Comments on: 3 Tips on how I Will Teach You To Be Rich http://www.vinnie.net/2009/03/20/3_tips_on_how_i_will_teach_you_to_be_rich/ Representin' vinnie on the net Fri, 16 Apr 2010 18:18:28 +0000 hourly 1 http://wordpress.org/?v=3.0 By: kadavy http://www.vinnie.net/2009/03/20/3_tips_on_how_i_will_teach_you_to_be_rich/comment-page-/#comment-3460 kadavy Wed, 30 Nov -0001 00:00:00 +0000 #comment-3460 <p>It might be a good time to distribute your IRA into your Roth IRA. Because 1) you won't be taxed on the gains when you're 59 1/2 (which will be a huge savings), and 2) because the value of your IRA will be TAXED as INCOME when you make this distribution, now is a good time for this, because the value of your IRA is probably artificially low (given the state of the economy).</p><p> I did this last year. I'd rather be taxed on 8k of income this year than $100k (what that 8k will likely be worth) later on.</p> It might be a good time to distribute your IRA into your Roth IRA. Because 1) you won’t be taxed on the gains when you’re 59 1/2 (which will be a huge savings), and 2) because the value of your IRA will be TAXED as INCOME when you make this distribution, now is a good time for this, because the value of your IRA is probably artificially low (given the state of the economy).

 I did this last year. I’d rather be taxed on 8k of income this year than $100k (what that 8k will likely be worth) later on.

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