The Cautious Investor

Is a Roth Conversion Right for You?

President Trump signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act on December 20, 2019. The bipartisan bill aims to make it easier for Americans to save for retirement.

As a result of the SECURE Act, Roth conversions are likely to become a more popular strategy among retirement investors – particularly the big savers.

The new rules could increase the tax burden for many investors who carry traditional IRAs or other retirement plans. A Roth conversion allows investors to lock in current, low tax rates. With a Roth IRA, you pay all taxes up front when your savings are transferred. This allows your money to grow tax-free.

In this video, Jonathan Lapine of W3 Wealth Management shares three factors to consider when thinking about converting your IRA. A Roth conversion is a complicated maneuver, and may not be beneficial to everyone. Discuss this with your financial advisor and tax professionals to see if you’re a good candidate for this type of plan.

Copyright 2020 The Business Journal, Youngstown, Ohio.