Please note that Portnoff Financial has joined with Tempus Wealth Planning and some information here may no longer be applicable. Please contact Jeremy Portnoff at 949-226-8342 (CA) or 732-226-3113 (NJ) for additional information.  We apologize for any confusion while we are in transition. 

West Coast Phone: 949-226-8342
East Coast Phone: 732-226-3113


Roth IRA Conversion Confusion

  • Partial conversions can be done.
  • The 2-year deal is no longer available.
  • Income restrictions are permanently repealed; anyone regardless of income can convert.
  • You can convert at any age.
  • You do not need earned income to convert; earned income is required for IRA contributions.
  • After-tax money can be converted tax free using the pro-rata rule.
  • Inherited IRAs cannot be converted but inherited plan funds can be converted.
  • Roth conversion funds can be accessed before the 5 year period is up however if you are under 59 ½, the 10% penalty will apply. If earnings are taken before the 5 year rule is up then income tax is due.
  • Required minimum distributions can never be converted. Before executing a Roth conversion, RMDs must be taken first.
  • There are no lifetime RMDs for Roth IRA Owners; there are Required Minimum Distributions for non-spouse beneficiaries of Roth IRAs.

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