Should I convert IRA assets into a Roth IRA?
Should I convert IRA assets into a Roth IRA? Dana Anspach answers the Common Retirement Question: Converting IRA Assets into a Roth IRA.
Key Takeaways
- Identify your 'opportunity zone' between retirement and age 72 when RMDs begin—you may be in a lower tax bracket during this window, making it ideal for converting traditional IRA assets to Roth
- Use partial conversions to 'fill up' your tax bracket (e.g., converting just enough to stay within the 22% or 24% bracket) rather than doing one large conversion
- Act before 2026 when current tax rates are scheduled to expire and revert to higher rates—conversions done in the next few years may be taxed at lower rates than future conversions
- Pay conversion taxes with cash outside retirement accounts, not from the IRA itself, to maximize the benefit of tax-free growth
- Consult a financial planner to model how conversions affect Medicare premiums (based on income 2 years prior at age 63+), capital gains tax rates, and other tax code interactions before converting
Should I convert IRA assets into a Roth IRA? Dana Anspach answers the Common Retirement Question: Converting IRA Assets into a Roth IRA. To watch more finStream videos featuring Dana Anspach, please click this link: https://www.finstream.tv/featured/dana-anspach/ or check out Dana's website: https://www.sensiblemoney.com/financial-planners/
{ "@context": "https://schema.org", "@type": "VideoObject", "name": "Should I convert IRA assets into a Roth IRA? - Finstream.TV", "description": "Should I convert IRA assets into a Roth IRA? Dana Anspach answers the Common Retirement Question: Converting IRA Assets into a Roth IRA.", "thumbnailUrl": [ "https://www.finstream.tv/wp-content/uploads/2023/01/partial-conversion-roth-ira-1920.jpeg" ], "uploadDate": "2023-01-30T14:59:00+00:00", "contentUrl": "https://finstreamtv-videos.s3.amazonaws.com/should_i_convert_ira_assets_into_a_roth_ira_%20(720p).mp4", "embedUrl": "", "publisher": { "@type": "Organization", "name": "Finstream.TV", "logo": { "@type": "ImageObject", "url": "https://www.finstream.tv/wp-content/uploads/logos/FinStream-800w-red.png", "width": "1920", "height": "1080" } }, "duration": "PT06M22S" }