Further, owners of traditional IRAs who were good candidates for a Roth IRA conversion before the tax reform may find that this is the best time for an even larger Roth IRA conversion. A Roth IRA conversion essentially buys Uncle Sam out of your partnership through an up-front tax payment. These numbers are based on the current tax laws, and they also assume no one ever spends my Roth IRA or the income my Roth IRA generates. Armed with that information, you can begin to build a Roth IRA conversion plan that is part of your master plan. It would be a smart move for many taxpayers to analyze the merits of a Roth IRA conversion.

Source: Forbes March 05, 2019 20:03 UTC