If you do not have earned income in retirement, you may still be able to do a Roth conversion by utilizing other sources of income, such as investment income, rental income, or distributions from retirement accounts. However, it's important to consult with a financial advisor or tax professional to understand the specific rules and implications of a Roth conversion in your situation.

Reported 5 months ago

The article explains that while earned income is required for contributing directly to a Roth IRA, it is not necessary for converting funds from a tax-deferred account into a Roth IRA. Retirement savers can initiate Roth conversions during low-income retirement years to benefit from lower tax bills, reduced RMDs, and tax-free growth. Roth contributions and conversions have different rules, with contributions requiring earned income and conversions involving moving funds from a tax-deferred account. There are no limits on Roth conversions, unlike Roth contributions which have income restrictions. Additionally, workplace retirement plans like Roth 401(k)s have different rules regarding income limits compared to Roth IRAs. The article advises on executing Roth conversions gradually to manage tax implications effectively.

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