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A high-income individual can contribute to a traditional IRA and then immediately convert the account to a Roth IRA.
By declaring the assets of the IRA immediately taxable you convert the account into a permanently tax-free savings plan.
Since she doesn't have any pretax IRAs, she can convert the account to a Roth tax free.
If you decide to declare the assets of the IRA as immediately taxable, you convert the account into a permanently tax-free savings plan.
Especially vulnerable are people who try to circumvent Roth IRA income limitations by following oft-repeated advice that anyone can contribute to a Traditional IRA and then immediately convert the account to a Roth IRA; some folks following such a strategy may be in for an unpleasant surprise.
In that case, ask the issuer to convert the account to a no-fee card or close it and take the hit.
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We are long-time fans of share buybacks, but the ability to convert the accounts to general spending cards has a certain allure from a long-term income standpoint.
Next, I had to click on a menu to create a linked "conversion" account to convert the bonds from paper to electronic.
There were a number of proposals in the early Cold War to convert the class to take into account changes in technology and doctrine.
The plan is expected to eliminate the extra penalties for withdrawing money prematurely from existing I.R.A.'s, encouraging individuals to convert the proceeds to tax-free accounts.
Facebook is ditching its own money system, Credits, and will convert the balance of its members' accounts into their local currencies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com