Is a Roth Conversion Right For You?

Could a Roth conversion help you take advantage of current tax laws and market conditions?

A Roth IRA offers a powerful way to create tax-free income in retirement, if it aligns with your long-term strategy. Since contributions are made with after-tax dollars, qualified withdrawals can be tax-free, provided IRS requirements are met.

Roth IRAs also eliminate required minimum distributions (RMDs), giving you more flexibility over your retirement income.

When Might a Roth Conversion Be a Savvy Move?

Certain market conditions may make Roth conversions more appealing, but they are not right for everyone. You might consider converting if:
  • You anticipate being in a higher tax bracket in retirement due to income changes, tax law updates, or relocating to a higher-tax state.
  • You have non-retirement funds available to pay the taxes on the conversion, avoiding the need to use converted funds.
  • You want to minimize future RMDs and leave tax-free assets to heirs.

When Might a Roth Conversion Not Be Right?
  • If you expect to be in a lower tax bracket in retirement, converting now could mean paying more in taxes than necessary.
  • The long-term benefits could be reduced if you do not have extra cash to cover the tax liability.
  • If you need access to the funds in the near future, remember that withdrawals of converted amounts must meet IRS rules to avoid penalties.

A Roth Conversion is Permanent, So You Need to Make Sure It’s the Right Move

Under current tax laws, Roth conversions cannot be undone. That’s why it’s important to weigh the pros and cons before making a move.

Would you like to explore whether a Roth conversion makes sense for you this year?

Call our office at 678-278-9632 to schedule a call.
 
I will guide you through a personalized assessment to help determine if this strategy aligns with your financial goals.

Warmly,

Barry

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“An investment in knowledge pays the best interest.”

— Benjamin Franklin
Disclosure: Wealth With No Regrets ® is an investment advisor in Georgia. Wealth With No Regrets ® is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. Wealth With No Regrets® only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Wealth With No Regrets’® current written disclosure brochure filed with the SEC which discusses, among other things, Wealth With No Regrets’® business practices, services, and fees is available through the SEC’s website at: www.adviserinfo.sec.gov These materials are for informational purposes only. It is not intended to provide, and should not be relied on for, any tax or legal advice. Please consult a qualified professional before making decisions about your financial situation. Any reduction in taxes would depend on your specific tax situation. Investments in securities entails risk and are not suitable for all investors. This is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. It is important that you do not use email to request, authorize or effect the purchase or sale of any security, to send fund transfer instructions, or to effect any other transactions. Any such request, orders, or instructions that you send will not be accepted and will not be processed. Content prepared by Snappy Kraken. Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

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