To Roth Or Not To Roth

Retirement, Income, Tax & Estate Planning.

To Roth Or Not To Roth

February 18, 2015 Newsletter 0

It seems that hardly a day goes by that a client doesn’t ask whether a Roth conversion makes sense.  I always have the same answer…it depends.

It’s a tricky calculation when deciding whether to pay the taxes now and have the money grow tax free for the rest of your life and the life of your kids and even grandkids.

This week I’ll share with you reasons why you should consider a Roth conversion.  Next week will be reasons NOT to consider the conversion.  So here goes:

Reasons to Consider Conversions:

  • If your income tax bracket may be the same or higher in retirement or in the future if already retired.
  • If you have the ability to report lower income in any given year, converting in that year could lower your income tax on the conversion.
  • If you do not need the IRA funds to live on and won’t need the required minimum distributions.
  • If it’s your desire for your beneficiaries to receive an income-tax-free inheritance.

Questions?  Just e-mail me at [email protected] or call Jaime (215-657-9200) and he’ll get you on my calendar.

In the meantime….as you ponder whether to convert, have a fun weekend.