In this week’s 60-second countdown question, a viewer asks: “Should I convert any or all of my IRA to a Roth IRA?” Follow along as Joe gives a detailed answer in one minute.
Important Points
0:14 “Hi Joe, I have a question. I’m retired and I have IRAs – should I convert any of that over to a Roth? Part of it? All of it?”
0:37 “The short answer to it is maybe”
0:41 “You have to take a look at a couple different factors but you can’t look at this in a bubble”
0:58 “A few things – first of all, how much money do you have in an IRA? What’s your other fixed income sources? What are you trying to accomplish long term when it comes to retirement income? What is your required minimum distribution going to look like? Do you want to pass wealth to the next generation? What’s your tax bracket today? What’s your tax bracket going to be in the future?”
1:15 “The short answer is yes, convert because the best part about doing a Roth IRA conversion is if you don’t want to pay the taxes you can always re-characterize at least it puts you in the game”
1:23 “We’re big believers of a tax-free income so Roth IRA conversions are one of the best things you can do”
