Convert to Roth

Anyone can convert to a Roth Individual Retirement Annuity (IRA). Roth IRAs used to be restricted to only those within specified income limits, whether single or married. Now, federal tax law allows you to convert your traditional IRA, 401(K), or 403(b) account balance maintained under a previous employer's retirement plan to a Roth IRA, regardless of your income or tax filing status.

Why Convert?

  • Tax benefits: Because you pay taxes now on contributions to a Roth IRA, you won’t be subject to taxes later, when you withdraw the money.1 So if you believe you will be paying higher tax rates in the future, a Roth IRA may make sense for you. Also, any earnings on contributions to a Roth IRA are exempt from federal taxes when you withdraw them.
  • Flexibility: A Roth IRA has no minimum required distributions.

Taxation

If you convert all or part of your traditional IRA to a Roth IRA, you'll probably owe taxes on what you have contributed already and any associated earnings. Remember: if you convert more than one IRA to a Roth IRA, include all of your traditional, SEP and SIMPLE IRAs to determine how much of your conversion is taxable.

Please note: State income tax rules for conversions may differ from federal rules. Please consult your financial advisor or tax professional before making any changes to your account.

Need More Guidance?

Call a Licensed Life and Retirement Specialist to talk about retirement products offered by the Church Pension Group.

1Certain restrictions apply. Federal taxes are subject to change.

 

Annuities are offered by Church Life Insurance Corporation, 19 East 34th Street, New York, NY 10016.

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