traditional ira

How the Taxes Work on a Roth IRA Conversion

When you contribute to a traditional IRA, you can deduct that money from your taxable income that year. When you contribute to a Roth IRA, you don't get the immediate tax benefit -- but you withdraw your money tax-free in retirement. It's also possible to convert from a traditional to a Roth, but you have to pay taxes to do so. A reader named Ron wants to know how that works, and when he'd have to pay the taxes. DailyFinance's Laura Rowley explains.

What Everyone Ought to Know About Roth IRAs

Though it has been part of the retirement investing landscape for more than a decade, many people still don't understand the Roth IRA, or what it can do for them. DailyFinance clears up the myths and misunderstandings about this tax-advantaged savings vehicle.