Might Be Time to Roll Your Pension to Your Roth | USTaxAid

Diane Kennedy's Blog

Might Be Time to Roll Your Pension to Your Roth

Written by Diane Kennedy, CPA on September 17, 2008

If your pension plan has taken a hit because of the declining Wall Street numbers, this could be a great time to roll it into a Roth account.

You will pay tax on the current value on the amount rolled from your pension into your Roth account at the time of the rollover. So, if the value is at a low point, you’ll pay less tax. Then when the value increases, it will be in the Roth account and increase tax free.

If you make over $100K per year in adjusted gross income, you can not make a rollover until 2010, however. As with other tax and financial strategies discussed through this blog and the First Class Lounge forum, make sure you take your personal advisor to see if this makes sense. But, you’ve got to admit it, it would be nice to make a phone call today with something positive to talk about!

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