Who should make Traditional IRA-to-Roth IRA conversions?
The consensus view is that the conversion route should be considered by taxpayers who:
- have a number of years to go before retirement (and are therefore able to recoup the dollars that are lost to taxes on account of the conversion);
- anticipate being taxed in a higher bracket in the future than they are now; and
- can pay the tax on the conversion from non-retirement-account assets (otherwise, there will be a smaller buildup of tax-free earnings in the depleted retirement account).
Please contact one of our Roth IRA Experts at 800-472-0646 for more information.