Reported 19 days ago
A recent analysis by Edward McQuarrie highlights that many Roth conversions may not be as beneficial as they seem, especially if Trump's tax cuts continue. While Roth IRAs offer tax-free withdrawals, the upfront tax payment during conversion could take years to yield significant savings. McQuarrie's calculations suggest that for some retirees, the eventual tax savings may not outweigh the initial tax cost until after their death, making the benefits primarily accessible to their heirs. This adds a layer of uncertainty to the decision to convert, particularly in light of possible changes to tax legislation.
Source: YAHOO