Reported 2 days ago
A 10% Roth conversion plan allows retirees to minimize taxes by converting a portion of their traditional IRA to a Roth IRA, helping them avoid required minimum distributions (RMDs) and benefiting from tax-free growth and withdrawals. While this strategy can offer significant tax advantages, especially if spread across several years, potential drawbacks include the immediate tax implications and penalties on early withdrawals of conversions. It's essential to consult with a financial advisor to tailor the approach based on individual financial situations and future tax expectations.
Source: YAHOO