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A tax client asked me: “Should I convert my IRA or retirement plan into a Roth IRA? That is a great question! However, as with any tax questions, it is impossible to have a definite answer when deciding whether to convert a traditional IRA or retirement plan into a Roth IRA.
Hello, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.
You will generally benefit from the Roth IRA conversion if ALL of the following applies to you:
- You don’t need to take withdrawals from your Roth IRA for at least 15 to 20 years;
- Your future tax rate when you take out withdrawals is the same or greater than the rate during the conversion and
- You can pay the tax on the conversion with non-retirement funds
If you meet all the criteria, congratulations! This is one powerful tax strategy that if you apply correctly, will definitely, build you tax-free wealth!
If you like to learn more, click the link lowermytaxnow.com and sign-in to receive my weekly blog.
Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.
Last Updated by Admin on 2016-11-16 06:53:55 PM