
✪ The Tale of Three IRA's
In fact, the assets in Mortimer’s Roth IRA used to live in his Traditional IRA. Years ago, he worked with his Certified Financial Planner™ practitioner to determine the optimal amount to convert to a Roth IRA. By doing so, he removed a fair sum from his IRA which was subject to required minimum distributions (taxed as ordinary income) and moved these assets to a Roth IRA that has no required minimum distributions and money coming out, is not subject to any taxes.