| If you have existing IRAs and you want them | | | | interests. Of course, Roth IRAs are better |
| converted to a Roth IRA this would be possible | | | | compared to other IRAs because of the tax |
| and the IRS will accommodate such request. But | | | | incentives that go with Roth IRA. Consider your |
| you must be careful and you should bear in mind | | | | options by asking or consulting professionals who |
| that if you have multiple IRAs the IRS would | | | | are well versed; people who you could trust in |
| treat them as one. It will be complex as it is | | | | making favorable results on your part. Ask |
| tricky. There will be a possibility that you will be | | | | yourself why is there a need for you to convert |
| paying more than you should depending on the | | | | your old IRAs to Roth IRA. |
| outcome of the computations. There are things | | | | Seek for the possibility of eliminating the |
| that you need to do and consider. | | | | complexities of conversions; try to open your |
| You need to calculate for the tax of your desired | | | | mind in seeking better alternatives. The |
| amount for conversion, the first thing that you | | | | professionals in taxation are well versed; they |
| have to do is to extract the none-taxable portion | | | | know things beyond our understanding in matters |
| of the total IRA that is non-Roth. The next thing | | | | of taxation and could provide better alternatives |
| that you have to do is calculate the non taxable | | | | that would even make better results. You may |
| amount by converting the percentage on the first | | | | probably have a valid reason for converting your |
| step into money value or dollars. Then calculate | | | | previous active IRAs to that of Roth. |
| for the amount that is necessary to be added to | | | | There could be different kinds of reasons why |
| the taxable income. As mentioned earlier, | | | | people would like to have their old IRAs |
| conversion to a Roth IRA can be a procedure | | | | converted into Roth IRAs; it is understandable |
| that would manifest complexities. It's not going to | | | | that indeed Roth IRAs are tempting because of |
| be easy and there is a possibility of you | | | | tax flexibilities. But then we should also re-evaluate |
| misinterpreting the procedures. | | | | our options parallel to that of our needs. These |
| That is why it is very important to seek | | | | complexities in conversions should not also hinder |
| assistance from people who are expert on taxes, | | | | us from finding ways having old IRAs converted if |
| professionals who have unquestionable skills in | | | | truly necessary. |
| taxation, persons who totally understands the | | | | If we carefully analyze the difference between |
| implications of tax so that you will have a clear | | | | traditional and Roth IRAs they are actually minimal. |
| understanding of the things that you are about to | | | | Difference would not make a big difference, |
| undertake. No question there is complexities in | | | | although certain advantages may have to be |
| converting your old IRA's to Roth. | | | | noted. But if you can see that the impact would |
| Before you make decisions in converting your | | | | be marginal then perhaps there would be no need |
| IRAs you have to think and re-evaluate your | | | | to have your old IRA converted. |