People who have a Roth IRA may want to pay close attention to government regulations retiring the popular retirement accounts as tax filing
With a Roth IRA, people do not have to pay taxes on their distributions because they do not claim a deduction for them like they would with traditional IRAs. As a result, the long-term financial benefits can be greater in many cases.
This is because of new rule changes that will benefit more account holders. According to a MarketWatch report, the passing of January 1 means that all Americans with traditional IRAs can now switch to a Roth, in contrast to the previous rule that limited this option to those earning less than $100,000 per year.
The report also noted that there are several common mistakes that people can make when switching or considering switching to a Roth IRA.
For example, some may fail to fully understand the tax ramifications of doing so, while other errors can include having taxes withheld when requesting the conversion, and converting one''s traditional IRA into an existing Roth account.
Liberty Tax Service provides computerized income tax preparation and electronic filing. Each tax office offers customers audit assistance, a money back guarantee, and free tax return checking.