Oct 30, 2008

I have converted

I finally converted my rollover IRA into a Roth!!! I figured I would take care of that now, since my numbers are considerably lower than what I started with. And as far as I know, you only have to pay taxes on what you have in the account, not what you originally put into it. I had to open a brand new account and transfer the entire fund over, so I thought they would liquidate it and I would buy into the stock again. But that's not how it works; they just switched the whole thing as is. That's good, because I'll keep exactly the same amount of stock. So now my money can grow and I won't have to pay any taxes on it in 40+ years when I retire!

1 comments:

ambellamy said...

I love the idea of the Roth IRA too. If I stay at my job till I retire and I get a pension... well that pension is tax deductible so i really don't want to be paying more taxes on top of that when I retire and want more money.