AimPoint Pension
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Loan & Distribution Specialist AimPoint Pension
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Bates & Company, Inc.
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Compass
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Regional Vice President of Sales The Retirement Plan Company
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Should You Convert to a Roth IRA Before 2013 Tax Changes?
Physicians' Money Digest Dec. 7, 2012
"Taking a traditional IRA funded with pre-tax dollars and converting into a Roth triggers a taxable event. If you wait and convert in 2013, it will affect the determination of whether the Medicare tax applies to the IRA owner's investment income. The converted IRA amount itself is not subject to the 3.8% tax as investment income. However, it is included in compiling the taxpayer's MAGI. Therefore, depending on your circumstances, a Roth conversion in 2013 could increase the IRA owner's MAGI over the specified $200,000/$250,000 thresholds, resulting in the application of the Medicare tax. Converting now avoids this possibility."
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