Flexible Retirement Income Is Possible With A Roth Ira Conversion
If you’re looking to take more control over your retirement income, a Roth IRA conversion may be an ideal option. When you convert a traditional IRA or 401(k) into a Roth, you gain flexibility by paying taxes upfront for eligible tax-free withdrawals later while also providing yourself with tax diversification.
Should I Convert?
What To Consider?
There’s no simple, yes or no answer when it comes to whether you should convert a traditional IRA or 401(k) into a Roth. For some, they can be an excellent addition to a financial strategy while for others, they may not be a good fit. Working together, we can look at your current financial strategy and discuss your retirement goals to determine if a Roth conversion should be your next financial move. Again, the significant difference between a traditional IRA or 401(k) and a Roth is that with a Roth, you position yourself for eventual tax-free retirement income no matter what happens to your tax rate during retirement. Moving forward with a Roth conversion often comes down to one question: Would converting a traditional IRA or 401(k) help me minimize taxes on future distributions? Potential Tax Benefits
If you’re pondering a Roth IRA conversion, the timing and your age are important factors. Furthermore, you should also thoroughly assess your current tax bracket while also considering the tax bracket you may be in during retirement. Doing so is important because converting a traditional IRA or 401(k) into a Roth means paying taxes now rather than on your future eligible withdrawals.
Understand The Why
To summarize, while you do have to pay taxes immediately on the money you convert to a Roth IRA potential advantages include:
Tax-free eligible distributions Tax-free growth on earnings More control of your future tax bracket No required minimum distributions
Sufficient income is an essential part of better ensuring you achieve and maintain your ideal retirement lifestyle. Let’s work together to examine whether a Roth IRA is a fit for your financial strategy • MAGGITAX.com
MAGGI Tax Advisory & financial Group
494412 2023-07-17 GIB RIA GS GA
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