Reported 6 days ago
Converting a traditional IRA into a Roth IRA incurs taxes, but strategic planning can mitigate the tax burden. By spreading out the conversion over multiple years instead of doing it all at once, individuals can manage their taxable income and potentially avoid higher tax brackets. For example, converting $845,000 in portions can help minimize tax implications compared to a single large conversion. Consulting a financial advisor can assist in tailoring a plan that aligns with personal financial circumstances.
Source: YAHOO