Jason York | Getty Images If you’re planning to roll over all your assets from a traditional individual retirement account to a Roth version, you might want to tap the brakes. While Roth IRAs grow tax-free and withdrawals generally also are untaxed — and they come with no lifetime required minimum distributions, or RMDs — traditional IRAs have some potential tax benefits that are lost for future use once the money is moved. “The whole idea behind managing taxes in retirement is that you want to get as much money out of your accounts at the lowest possible cost,” said Ed Slott, CPA and founder of Ed Slott and Co. in Rockville Centre, New York. “I’m a big Roth fan, but if you can get your taxes lower, you may want to hold back some of your money in the traditional IRA,” Slott said. More from Personal Finance: New York judge dismisses suit over SALT tax deductions ATM bank fees hit a record high — and it’s draining your cash Women make this big mistake when it comes to life insurance Those tax benefits generally relate to medical expenses, charitable contributions and business losses (explained further below). When you roll… Read full this story
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Before moving all your IRA money to a Roth, consider these lost tax benefits have 303 words, post on www.cnbc.com at October 7, 2019. This is cached page on Goose Art. If you want remove this page, please contact us.