Roth Conversion Reduces Taxes

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Roth Conversion Limitations

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Business

Business & Economics

I'm 64 and Worried About RMDs. Should I Start Converting My $650K IRA to a Roth?

Summary

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79% Informative

You can reduce the impact that taxes have in retirement by converting pre-tax savings into Roth assets.

Doing so not only unlocks future tax-free growth, but also helps you minimize or avoid required minimum distributions (RMDs) You may be able to reduce the overall tax burden by gradually converting your IRA over several years .

A financial advisor can help you plan for RMDs and explore other tax planning strategies for retirement.

A strategy of gradually converting funds from an IRA into a Roth account can help you manage and minimize the taxes you pay on the conversion.

The idea is to convert enough money each year to raise your taxable income to the top of your current tax bracket, but no more.

Avoiding RMDs is one benefit of Roth conversion, but the strategy also can potentially help with estate planning.

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informal

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English

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