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Thanks to new tax law
provisions becoming effective this year, you potentially have a once in a
lifetime opportunity to make your retirement and financial future a little
easier. You can now convert your traditional retirement savings plan into a
Roth IRA. Your assets can potentially grow, be withdrawn tax-free, and not
be subject to income restrictions. Currently, conversions will be given this
special tax treatment only in 2010.
Under the new tax
provision:
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There are no longer any income limits on
converting a traditional IRA to a Roth IRA, so if you didn’t qualify to
convert to a Roth IRA before, you will now be eligible.
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Please remember that you may have to pay taxes
on this conversion. If you do you can convert in 2010 then spread the tax
bill over 2011 and 2012, making it easier to pay those taxes now so your
savings can potentially grow and be withdrawn tax-free in the future.
Other benefits of a
Roth IRA will remain unchanged, including;
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Roth IRA savings are not subject to required
minimum distributions, giving you more income flexibility in retirement.
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Neither you nor your heirs will owe income tax
on qualified withdrawals.
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Annual Contributions may be made after age 70½
if you or your spouse are still working and earning income.
There are many tax
considerations to review and be aware of that help determine if converting
your Traditional IRA to a Roth IRA is an appropriate financial decision for
you.
To learn more about
Traditional to Roth IRA Conversions, please contact our CU Preferred
Investments, Inc. Financial Advisors at Anoka Hennepin Credit Union. You can
also call Dave Murdock at 651-765-6778 or Shea Murphy at 763-549-6161.
Securities and investment
advisory services offered through Financial Network Investment Corporation,
member SIPC. CU Preferred Investment Services, Inc., Anoka Hennepin Credit
Union and Financial Network Investment Corporation are not affiliated
companies.
Mutual
funds, annuities and other investments available through Financial Network
Investment Corporation are not insured by the NCUSIF or any federal
government agency, are not deposits, or obligations of nor guaranteed by
Anoka Hennepin Credit Union or any other affiliated entity. Investments are
subject to investment risks including loss of principal invested.
Financial Network Investment
Corporation nor any of its representatives or agents give legal or tax
advice. For complete details, consult with your tax consultant or attorney. |
