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News » Assembly votes to drop IRA transfer penalty
Feb. 26, 2010
The state will no longer penalize people who want to shift money in their retirement account into a Roth IRA.
Yesterday the Assembly voted to remove the penalties to match federal rules which were changed more than a year ago. Kaukauna Representative Tom Nelson says there is a lag between when things happen in Washington, and when they change in Wisconsin.
Nelson says the state will lose tax revenue from the penalties in the future.
Janelle Fuhrmann of Thrivent Financial says the change allows penalty-free transfers from most retirement plans. She says it also let's people decide when they want to pay taxes on their retirement money. It's taken off of traditional plans when money is withdrawn, but you pay up front with a Roth IRA. |
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