EPISODE · Apr 7, 2023 · 15 MIN

Is a Roth Conversion the Right Move for You?

from Casual Friday: Financial Insights

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.Send in your questions!