IRA Rollover

Posts Tagged ‘rollover ira into roth ira’

Question: Can u rollover from traditional IRA to Roth IRA and avoid paying taxes?

My parent made some traditional IRA into the bank and is it possible to rollover to Roth and avoid paying taxes when they withdraw it when it reaches to 70 1/2 years old?

Answer: When you go from a traditional IRA to a Roth IRA, it is called a “conversion”, not a rollover. When you do a conversion, it is a taxable event, thus you do not avoid paying the taxes.

Creative thinking though! (Btw, you don’t have to withdraw assets from a Roth IRA at age 70 1/2).

Self Directed IRAs Rollover and Conversion by James Smith Seminar Infomercial