Roth IRA conversion will be interest-free for those in the highest tax brackets until the end of the year, according to a recent report by Bloomberg news.
Its the deal of the century, Ed Slott of irahelp.com told Bloomberg News. Its like Congress is giving you an interest-free loan to build a tax-free savings account.
Due to the extension of Bush-era tax cuts, wealthy Americans can get an interest-free tax break, while traditional IRA retirement accounts have the advantage of only paying taxes upon deposits, not withdrawals.
Congress and President Barack Obama passed into law earlier this month a tax-cut bill that cost nearly $900 billion that extended Bush-era tax rates.
According to Mimi Li of the Epoch Times, the tax reprieve will save already rich Americans thousands of dollars:
The tax reprieve will affect IRA holders and a transfer from a traditional IRA to a Roth IRA could save rich Americans thousands of dollarsFor example, someone with an IRA account with $1.2 million would save more than $55,000 in taxes due to the new tax law, according to Bloomberg.
