Roth Conversions: Smart Move or Tax Trap | Durham News

Roth IRA conversions are surging 41% this year thanks to the One Big Beautiful Bill Act, which locked in lower tax brackets—making people feel more confident to convert. But Charles Schwab warns it’s risky: once you convert, you can’t undo it after Jan 1, 2018, and a big move could push you into a higher tax bracket, costing years of growth. Three red flags? If you’ll be in a lower bracket at retirement, can’t pay taxes without touching savings, or can’t wait five years for tax-free withdrawals—skip it. Experts say compare your current and future tax rates, and consider gradual conversions for safer results. Listen in comfort: Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN: [email protected] This is an automated, high-level news summary based on public reporting. Report issues to [email protected]. View sources & latest updates: https://sources.thednn.ai/eb2dc9cb1eb20da3