The rules surrounding conversion from a traditional IRA to a Roth account can be difficult to understand, as evidenced by one advice seeker's question to Fox Business regarding her retirement account. The question involves whether or not both spouses can convert to Roth IRA accounts in the same year or if only one is able to make the shift.
While limitations exist regarding making tax-free contributions to a traditional IRA or the ability to contribute to a Roth, tax codes do not inhibit a spouse's decision to choose one account over the other because of their husband or wife's choice of retirement plan.
However, each spouse should be aware of the income rules and contributions that surround each type of account to ensure they are in compliance with tax laws during filing season. To ensure that there are no mistakes during income preparation, individuals and spouses should consult a tax preparer or service provider.
Working with a professional will also help Americans understand the impact of their decision to either convert to a new retirement account or keep the one they currently have.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.