Go to UK | HK site
What you need to know about the Automatic Exchange of Information (AEOI) if you are responsible for a Hong Kong Financial Institution. … Read more
As a UK expat in Hong Kong myself, I know that finding your way around a new place takes time, patience and (ideally) a helping hand. … Read more
1403 14/F The Lucky Building, 39 Wellington St, Central, Hong Kong
enquiries@buzzacott.hk T +852 3192 7088
Converting your traditional IRA to a Roth IRA will for some taxpayers, create long-term tax benefits, as generally, subsequent withdrawals are not taxable, and no minimum distribution is required each year after reaching age 70 ½ (unlike for traditional IRAs). Conversions are taxable in the US at ordinary income tax rates and so will create a tax charge for 2019 that must be met by other sources of cash.
However, given the flexibility that a Roth may bring, taxpayers who are more suited to a Roth IRA from an investment perspective may wish to consider making the conversion now. Where contributions into the 401(k) plan or traditional IRA also involve a period of foreign service, available foreign tax credits may be used to reduce the liability. No NIIT (Net Investment Income Tax) is due on any distribution, conversion or rollover to/from a Roth IRA account.
You may want to consider transferring your traditional IRA/401(k) plan into a Roth IRA before the end of 2019.
Please fill out the form below if you have any questions.
2019 US tax year end planning
Expatriate tax
US & UK Tax Returns And Compliance
US & UK Personal Tax And Estate Planning
Contact us
