Individual filers can either take the standard deduction or itemized deduction. So, as you wrap up this year, go back and look at last year’s federal income tax returns. If you were a standard deduction filer and not much changed in your life this year, there is a good chance you will take the standard deduction again. Qualified Roth IRA distributions are not taxable income, allowing you to keep down taxes on your Social Security Benefits and to minimize Medicare premiums in retirement. By converting a traditional IRA to a Roth IRA, any untaxed amounts that are rolled over or transferred to a Roth IRA are subject to income taxation.

Source: Forbes December 03, 2019 21:22 UTC