Converting a Traditional IRA to a Roth IRA may help you take advantage of future tax-free earnings. While you may pay tax on part of the amount you convert, your tax-free potential is maximized if you pay it from your income or savings, not your IRA. For 2010 conversions, you can report half the taxable income in 2011 and half in 2012, or the full amount in 2010. After 2010, you must report the full amount in the current taxable year.
Information and these calculators are made available by one or more third party service providers. All examples are hypothetical and are for illustrative purposes. SunTrust Bank and its affiliates do not provide legal or tax advice. Information provided and these calculators are not intended to offer any tax, legal, financial or investment advice. SunTrust cannot guarantee that the information provided or the calculators are accurate, complete, or timely. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. SunTrust makes no warranties with regard to these calculators or the results obtained by their use. SunTrust disclaims any liability arising out of your use of, or any tax position taken in reliance on, these calculators. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Fifty years ago, it wasn’t at all unusual for an individual to work his or her entire adult life for the same company. Today, however, by the time they reach age 50, the average baby boomer will have held nearly twelve different jobs.1 As a result, many people find themselves juggling multiple legacy retirement accounts that they’ve maintained at previous employers.