Reported about 1 month ago
Converting 15% of a 401(k) into a Roth IRA each year can provide tax-free growth and bypass Required Minimum Distributions (RMDs), but it may come with substantial upfront taxes. Gradual conversions might mitigate tax burdens by keeping individuals in lower brackets, but the direct benefits depend on personal financial situations, future income expectations, and withdrawal limitations. Consulting a financial advisor is recommended to tailor strategies effectively.
Source: YAHOO