How do I know if I should do a Roth Conversion?

There are many advantages to converting to a Roth IRA.

  • Tax-free qualified distributions
  • Tax-free growth of earnings
  • Eliminate uncertainty about future tax rates
  • Lower taxes owed on retirement benefits like Social Security
  • No minimum distribution requirements
  • Provide a greater financial legacy to your heirs

While you will have to pay taxes on the amount you convert, paying taxes now could be offset by significant gains later. Switching your traditional IRA to a Roth IRA means you pay no tax on the distributions in future years.