What are the advantages of a Roth IRA conversion?

  • You generally won’t have to pay taxes when you withdraw money at retirement, as long as you’ve had the account for more than five years and are either over 59½, disabled, or you’re a homebuyer using up to $10,000 on your first home. If you think your tax rate will be the same or higher than your current rate when you withdraw your money, paying taxes now could be beneficial.
  • The tax-free distributions in retirement may help reduce the taxes on other income such as Social Security, and may also reduce Medicare premiums.
  • There are no required minimum distributions after you retire.
  • There are no income limits to converting to a Roth IRA.