Roth

thumbnail Converting from a traditional retirement account to a Roth

Why would you want to convert from a traditional retirement account to a Roth?  In our opinion, the only reason to perform a conversion is to realize a higher final return at the time of distribution, which is an unlikely scenario for most people.

When you convert from an existing retirement account to a Roth, you need to pay taxes on the earnings made in the account, and typically the taxes need to be paid in the year of conversion. That means you’re paying taxes this year, instead of when you take the money out.

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