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.
This article is intended for educational purposes only. The information provided is educational in nature, and is not intended to be relied upon as financial or tax advice. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. When deciding whether to roll over a retirement account, you should carefully consider your personal situation and preferences. The information on this page is being provided for general informational purposes and is not intended to be an individualized recommendation that you take any particular action. Factors that you should consider in evaluating a potential rollover include: available investment options, fees and expenses, services, withdrawal penalties, protections from creditors and legal judgments, required minimum distributions, and treatment of employer stock. Before deciding to roll over, you should research the details of your current retirement account and consult tax and other advisors with any questions about your personal situation.