Roth Conversion: Pros & Cons

by CHZ



Roth Conversions for IRA’s, 401(k), 403(b), and other type of retirement plan can potentially be a great financial move. But there are also a lot of pitfalls associated with Roth Conversions such as a big tax bill due, the loss of college financial aid, higher taxation of social security, high Medicare Premiums, and the potential loss of tax credit and deductions. In this video we will go over who the Roth Conversion strategy works for and who is doesn’t.

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2 comments

Muse Cosmos October 22, 2020 - 6:36 pm

My understanding is that the Roth IRA do not get a step up of basis upon inheritance so the only tax free distribution would be the existing basis of the Roth IRA. Therefore the gains (the remainder) would be taxed at ordinary income tax rates upon distribution.

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Ted Adams October 22, 2020 - 6:36 pm

Roth conversions prior to taking Social Security can reduce the taxability of Social Security by reducing or eliminating RMD on the pretax account?

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