Is a Roth Conversion the Right Move for You?
An episode of the Casual Friday: Financial Insights podcast, hosted by Ford Financial Group, titled "Is a Roth Conversion the Right Move for You?" was published on April 7, 2023 and runs 15 minutes.
April 7, 2023 ·15m · Casual Friday: Financial Insights
Summary
Individual Retirement Accounts (IRAs) provide individuals with an opportunity to save for retirement on a tax-advantaged basis. Traditional IRAs allow contributions to be made on a pre-tax basis, meaning that contributions are tax-deductible in the year they are made. However, distributions from traditional IRAs are subject to income tax in retirement. On the other hand, Roth IRAs allow contributions to be made on an after-tax basis, meaning that contributions are not tax-deductible in...
Episode Description
Individual Retirement Accounts (IRAs) provide individuals with an opportunity to save for retirement on a tax-advantaged basis. Traditional IRAs allow contributions to be made on a pre-tax basis, meaning that contributions are tax-deductible in the year they are made. However, distributions from traditional IRAs are subject to income tax in retirement.
On the other hand, Roth IRAs allow contributions to be made on an after-tax basis, meaning that contributions are not tax-deductible in the year they are made. Moreover, distributions from Roth IRAs are tax-free in retirement.
This week Brian discusses when it is the right time to do a traditional IRA to Roth IRA conversion. Some factors to consider are the timing of the conversion, tax rates, future income, retirement goals, and available funds.
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