In 2010, the IRS removed limits on how much can be transferred from an IRA or other retirement account into a Roth IRA. You do pay tax on the amount of assets transferred. However, after that, the Roth IRA money can be invested tax-free indefinitely, and no taxes are due upon withdrawal. Plus, Roth’s have no Requirement Minimum Distributions (RMDs) when account owners hit age 70 1/2.
“The new rules have changed the financial playing field,” says LNWM’s Kristi Mathisen, spurring high-net-worth individuals to move some of their retirement holdings into Roth IRA accounts.
For more on Roth IRAs, read Kristi’s interview with M. Sharon Baker in the April 2014 issue of Alaska Airlines Magazine (pages 149-150).