Understanding Roth Conversions: Is It the Right Fit for You?

As retirement approaches or begins, many people revisit how their savings are structured. Traditional IRAs and 401(k)s often make up a significant portion of retirement assets, and future withdrawals from these accounts are generally taxed as ordinary income. For this reason, Roth conversions in retirement have become an increasingly discussed planning strategy. A Roth conversion involves moving funds from a traditional IRA into a Roth IRA and paying income tax on the converted amount in the year of the transaction. Once inside the Roth account, qualified withdrawals are generally not subject to federal income tax. While the concept may […]