Should I convert to a Roth IRA?
While in the past, Roth IRA conversions have been limited to those individuals with an adjusted gross income of $100,000 or less, changes in the law provide that, beginning in 2010, all otherwise-eligible taxpayers can convert to Roth IRAs, regardless of income. For conversions occurring in 2010, you may have the option of either reporting the full amount of your conversion-related taxable income in 2010 or reporting one-half of your taxable income in 2011 and one-half in 2012. After 2010, conversions must be reported in full in the taxable year in which they are made.
You should consult with your tax advisor before making any decisions regarding conversions or reporting. Please note that, due to variation in state tax laws, this calculator does not take state tax rates into account.
- The information provided does not represent any particular investment or other financial product and is for illustrative purposes only. The calculator is intended to be used as only one of many tools to assist you in identifying information and issues to be considered in planning for financial security.
- Dividends on insurance policies and returns on investment are neither estimated nor guaranteed. Actual dividends and returns on investment may be higher or lower than the results attained in the hypothetical calculations.
- While this calculation tool is based on Guardian’s understanding of current tax law, there is always the possibility that Congress could enact changes to applicable law. The result of such changes could be the alteration of the tax treatment of your conversion and/or eventual withdrawals.
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. This presentation is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary, and you should consult your tax or legal advisor for guidance and information specific to your situation. The Guardian Life Insurance Company of America, GIAC, PAS, GIS and their affiliates or subsidiaries are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by this calculator.