If you’re wondering when is the best time to convert a traditional IRA to a Roth IRA, the following information may help. Roth IRA conversions typically make the most sense for older retirement plan investors, who tend to be in higher tax brackets.
One of the most important considerations when converting to a Roth IRA is the tax consequences:
Under previous tax law, if you changed your mind after converting a traditional IRA into a Roth IRA, you could reverse your decision up until the due date of your tax return. However, the Tax Cuts and Jobs Act of 2017 removed the ability to recharacterize any Roth IRA conversions done in 2018 and going forward.
Since Roth conversions can be complex, it’s important to receive the guidance of an experienced financial professional. Contact the office to schedule a time to discuss whether a Roth IRA conversion is an appropriate strategy for you.
Bellevue Financial Advisors helps women who take the lead in their family finances to live confidently, knowing that they are financially Put Together – that they are making the next right move, and are on track to turn their money into lasting wealth.
Learn what Financial Partnership looks like.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
Tax Advantages of a Roth IRA Conversion
April 26, 2021