Roth IRA conversion: Here’s everything you need to know before converting
A Roth IRA is the best retirement account around, according to many experts. It offers huge benefits such as tax-free income and the ability to leave tax-free money to heirs. Plus, because of its tax-free status, a Roth IRA gives you flexibility when it comes to taking retirement income.
But what if you have another type of retirement plan? The good news is that you can convert plans such as a 401(k) or traditional IRA to a Roth IRA and take advantage of its range of benefits.
“Converting to a Roth can be a great way to take advantage of historically lower tax rates and establish a tax-free retirement,” says Eva Victor, senior director of high-net-worth wealth planning at Northwestern Mutual. “Once you have a Roth IRA, it can produce tax-free income for years, even decades.”
Here’s how to use a Roth IRA conversion to set up tax-free income for your retirement.
Royal, J. (2024, November 25). Roth IRA conversion: Here’s everything you need to know before converting. *Yahoo Finance*.
