Considering a Roth IRA Conversion? There’s No Time Like the Present.

by | Nov 1, 2021 | In The News

Published November 1, 2021 by Barron’s 

Now could be a good time to think about converting your traditional individual retirement account into a Roth IRA. That’s what more advisors have been telling clients these days, given a perfect storm of events that could make prompt action more important than ever.

Converting from a traditional IRA to a Roth IRA has been a strategy used for many years by people who make too much money to open a Roth initially or who make too much to contribute outright to an existing Roth. While converting means an upfront tax bill, any subsequent earnings will be tax-free within the Roth IRA and upon withdrawal, provided you meet a requisite holding period. Converting to a Roth also means no required minimum distributions at age 72, so the money can grow tax-free for longer, which may appeal to those who don’t expect to need the money in retirement.