Hi Reader,
What is a Roth IRA conversion?
A Roth IRA conversion is the process of moving money from a Traditional IRA or non-deductible IRA into a Roth IRA.
Why consider a Roth IRA conversion?
You’ll pay taxes on any pre-tax dollars converted, but once the funds are in the Roth account, they can grow and be spent tax-free in retirement.
In addition, Roth IRAs are NOT subject to required minimum distributions (RMDs).
When is a Roth IRA conversion ideal?
A conversion may be especially valuable in years when your current tax rate is lower than you expect it to be in the future.
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David N. Waldrop, CFP®
Owner of Bridgeview Capital Advisors, Inc. a Registered Investment Advisor.
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