If you convert your traditional IRA to a Roth during this year, however, you'll have to pay the tax all at once on your 1999 tax return. Make sure you explore other options for tax-deferred savings. Here are a few you may have overlooked. If your non-working spouse doesn't have a spousal IRA, you might want to set one up. If you have children, education IRAs are a way to save.
Withdrawals are tax-free if they are used for qualified educational purposes.
If you are self-employed, consider establishing a Keogh or SEP retirement plan. Reducing your adjusted gross income could enable you to qualify for certain tax credits or deductions. Charitable donations in cash or kind will enable you to help others while helping yourself. Please keep in mind that the information provided here is meant to help you understand the general issue and does not constitute any tax or investment advice. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice.