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Indiana | If all current retirement funds are in Roth, depending on amounts in each type, and what if any other income sources there may be in retirement and what your current taxable income is, it may make sense to hedge future tax risk and leave some in traditional account unless you are completely positive your current tax rate in the conversion year will be less than when taking a withdrawal. Something else to think about is that the market has done well for the last decade, and I’m not one to time the market but several common valuation metrics point to lower returns for the foreseeable future than what we’ve had in the recent past. In this scenario your tax free growth isn’t important...since they’re may be very limited growth in next decade or so. No guarantees of this of course.
This is really a question best answered by an accountant with detailed knowledge of your complete financial picture, because it’s certainly not the case that a Roth is always superior choice. | |
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RE: roth conversion
