• Independent Fiduciary Advice

Should I Consider Doing a Roth Conversion?

Financial Planning, Investment Management, Retirement Planning, Tax Planning

A Roth conversion involves transferring funds from a traditional IRA or 401(k) into a Roth IRA, potentially offering significant long-term tax benefits. However, several factors need to be considered to determine if a Roth conversion is right for you. The primary consideration is the current and future tax implications. When you convert to a Roth IRA, the converted amount is subject to ordinary income tax in the year of the conversion. Therefore, it’s crucial to evaluate your current tax bracket and compare it to your expected tax bracket in retirement. Converting during a year when your income is lower than usual can be advantageous, minimizing the tax hit.

(4) April Should I consider doing a Roth conversionDownload

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