Roth IRA Conversions: What To Know And How To Use Them
Converting a pre-tax retirement account, such as a traditional IRA, to a Roth IRA is a rather straightforward process that may allow for big tax savings in the future, depending on your circumstances. Here’s an overview. What Is A Roth conversion?A Roth conversion involves transferring pre-tax—often referred to as “traditional”—retirement account funds into a Roth account. Roth accounts are post-tax, meaning that you’ve already paid income taxes on what you contribute … and won’t pay income taxes on those contributions when you withdraw funds later. That’s in contrast to traditional accounts, ...