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Is it time to consider converting to a Roth IRA?

Talk to your financial or tax advisor or call a retirement
professional at The Principal 1.800.247.8000 x2216.

Converting an IRA (traditional, rollover, SEP or SIMPLE[1]) or other eligible qualified retirement plan to a Roth IRA may be more attractive and accessible than ever before. As of January 1, 2010, all investors have an opportunity to convert their retirement assets to a Roth IRA as income restrictions are going away.

Why a Roth IRA?

Roth IRAs offer several features, including:

  • Potential for federal tax-deferred growth and qualified tax-free distributions[2]
  • Power of compounded earning potential
  • Opportunity for federal tax-free distribution to heirs[2]
  • Variety of investment options
  • No required minimum distributions

» More about Roth IRAs

Should I convert my IRA into a Roth IRA?

Before you consider converting any of your assets, you'll want to make sure that a Roth IRA Conversion[3] makes sense for your financial situation.

Eligibility for a Roth Conversion doesn't automatically mean you should convert your assets. You'll want to revisit your retirement goals and look at all tax considerations as Roth IRA Conversions may not be appropriate for all investors.

Talk to a professional

Consult your financial or tax advisor to determine if making a Roth IRA part of your overall retirement savings plan is right for you.

Or, call a retirement professional at The Principal®… 1.800.247.8000, ext. 2216.

 

 

[1]
A SIMPLE IRA can be converted to a Roth IRA, but only after you have maintained the SIMPLE IRA for two years.
[2]
Roth IRA contributions are not tax-deductible, but earnings can be withdrawn income-tax-free if you're at least 59 ½ and have had the Roth at least five years.
[3]
Conversions are subject to federal income taxes. State taxes also may apply: check with your local tax advisor. Refer to IRS Publication 590, Individual Retirement Arrangements (IRAs) for a complete discussion of making contributions and taking withdrawals from IRAs.Withdrawals made prior to age 59 ½ may be subject to a 10% IRS early distribution penalty.

 

While this communication may be used to promote or market a transaction or an idea, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Retirement professionals are sales representatives for the members of the Principal Financial Group® (The Principal®). Except under certain circumstances, they do not represent, offer or compare products and services of other financial services organizations.

Investment and insurance products are: not a deposit · not FDIC Insured ·
not insured by any federal government agency · not a bank guarantee · and may lose value.

Have a question? Call us at 1.800.986.3343

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