Roth Conversions

There are three ways to fund a Roth IRA, you can contribute directly, you can convert all or part of a traditional IRA to a Roth IRA, or you can roll funds over from an eligible employer retirement plan. Roth conversions are a powerful tool available to everyone who has money in a traditional IRA or employer plan.


Roth IRA Basics

Roth IRAs have several advantages over traditional IRAs. 

  • Qualified distributions from a Roth IRA are tax free. This includes any within the IRA after converted. 
  • Roth IRAs do not have Required Minimum Distributions for the original owner. 
  • Roth IRAs have use the favorable first-in-first-out method for recovering non-taxable basis when making a distribution before they are eligible for tax free distributions. 

If you convert money today, you will pay income tax on that money now so you don't have to later. The question is, will a Roth conversion be beneficial to you over time? If so, how much should you convert and what is the timing of those conversions?

In some cases we can do Roth conversions tactically, minimizing even the current tax impact, while providing tax free income later in life. 


Free Roth Conversion Guide

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Roth Conversion strategies we use 

  • Roth conversions to "fill-up brackets"
  • Roth conversions by asset class with recharacterizations
  • Isolated Roth conversions when basis exists
  • Using Roth conversions to manage future Required Minimum Distributions
  • Utilizing free Roth conversions in low taxable income years or to absorb loss situations

Making the decision to perform a roth conversion

Need help deciding on whether to convert IRA or 401k money to a Roth IRA? We do the math, we build these strategies into your plans. Don't pass up an opportunity to create a tax free income stream. 

We offer free consultations and can help you make these decisions and implement these strategies. Schedule your free consultation today.