Four Reasons to Consider Partial Roth IRA Conversions Now


Taxes might be the biggest expense you have for the rest of your life, especially if you’ve accumulated a large IRA. While I hope the government can come together to agree to lower taxes, with over $32 trillion in government debt, I’m not overly optimistic about seeing lower taxes in the future.

To truly comprehend the Roth IRA conversion strategy, consider this analogy: If you were a farmer, would you rather pay taxes on your penny seeds, or on your million-dollar wheat harvest? Clearly, the majority of us would rather pay taxes on the pennies not the dollars, and that’s why a Roth IRA could be a helpful strategy. This is especially important with the elimination of the stretch IRA, as I discussed recently when I was interviewed on the Today show.


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