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When to do a Roth Conversion in retirement Thumbnail

When to do a Roth Conversion in retirement

You might assume Roth Conversions are just for young people.

Wrong!

Retirees are often great candidates for Roth conversions, and they can help diffuse a “ticking time bomb” of taxes, as I’ll explain…

A Quick Review

A Roth Conversion simply means converting a traditional (pre-tax) IRA into a Roth IRA.

Let’s say you have $500,000 in a traditional IRA.  Converting $100,000 of that into a Roth simply means moving $100,000 from your Traditional IRA account into your Roth account.

Oh, and you need to pay taxes on the $100,000 that you are converting.

Why would ever want to pay taxes today that you could pay tomorrow, or never pay for that matter?!

Someone’s Gonna Pay No Matter What

Someone is eventually going to have to pay taxes…