Roth conversions may create a beneficial tax-free growth for your investments, but there are a few considerations to work through. Converting from a traditional IRA to a Roth IRA creates a taxable event and may have a positive or negative affect on your overall financial wellbeing.
What to consider before a Roth Conversion?
- Where are you getting the money to pay for this taxable event?
- What will your future tax bracket be when it is time to pay the tax on this conversion?
- When do you need this Roth IRA money you are converting?
- Will this affect any capital gain tax bracket?
- Will this affect your Health Care premium tax credit? Medicare part B? or Social Security taxation?
How we can help
Roth Conversion is a popular subject, but there are several factors that may influence the timing and appropriateness of a conversion.
King Wealth Management is not a tax advisor and does not render tax advice. Separate tax counsel is required. We will work with your preferred tax advisor as needed.