Understanding Roth IRA Conversions: Key Points to Know

Reported about 7 hours ago

A Roth IRA conversion allows individuals to transfer funds from traditional retirement accounts, such as 401(k)s or traditional IRAs, into a Roth IRA, providing valuable tax-free income in retirement. The process involves three basic steps: opening a Roth IRA, contacting plan administrators, and submitting the necessary paperwork. Individuals considering this option should be mindful of tax implications, the five-year rule for withdrawals, and how conversions might affect eligibility for government programs. It’s advisable to consult with a financial advisor to navigate the complexities involved.

Source: YAHOO

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