Entries in IRA (2)


Tax Tip: Prior Roth IRA Conversion Could Cost You This Year

Comstock Images/Thinkstock(NEW YORK) -- If you converted a traditional IRA to a Roth IRA a few years back, get ready to pay the taxman.

In 2010, millions of Americans who wanted to convert their traditional IRA to a Roth were given a tax break; they were able to split the claimed income into two years -- 2011 and 2012.  But now, the first half of that income needs to be claimed on returns filed this spring.

"People may have sometime taken an action in the prior year and then forgotten that they did that," says Kathy Pickering with H&R Block. "This is a great time to look back and say, 'Did we do that conversion? What's the income that I'm going to need to recognize?  What are the taxes that I'm going to have to pay on that and do I have the money to pay those taxes?'"

And it could potentially be a lot of money -- a $100,000 conversion means taxpayers would have an extra $50,000 in income to report this year.

Taxes for new IRA conversions now have to be paid in the year of the conversion.

Copyright 2012 ABC News Radio


Witness Lost $60K Following Goldline's Suggestion

Photo Courtesy - Getty Images(WASHINGTON) -- A doctor from suburban New York told Congress Thursday that a salesman for the precious metals firm Goldline convinced him to convert his entire $140,000 IRA into gold coins, and that he lost almost $60,000 overnight by making the switch.

Dr. Julius Bazan's claim before a House committee echoed what a former salesman for Goldline told ABC News in an exclusive interview about the precious metal firm's alleged drive to convert retirement accounts into gold coins.

The hearing, which began Thursday afternoon, is meant to explore the reportedly controversial sales practices of Goldline, the precious metals dealer that pioneered the practice of weaving its sales pitches into broadcasts by popular conservative political personalities such as Glenn Beck, Mike Huckabee and Fred Thompson. Company salesmen have allegedly nudged callers away from buying gold bullion and into purchasing collectable coins, which are unregulated and subject to sizeable mark-ups.

Bazan, a Czech-born neurologist from Lynbrook, New York, said in a prepared statement that in the fall of 2009, having seen Goldline's advertising, he decided he should "look into the purchase of gold" with the funds from a $140,000 IRA account.  Bazan said that he had wanted to buy bullion, but when he talked to a Goldline sales representative, the man steered him toward coins.  Bazan said the sales rep told him gold would likely reach a value of $3,000 per ounce within the year.

Copyright 2010 ABC News Radio

ABC News Radio