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Episode Nine: Strategic Roth IRA Conversions
Strategic Roth Conversions: What Are We Talking About Today?
As we approach the age when required minimum distributions (RMDs) begin, it is worth looking beyond this year’s tax bill.
A Roth conversion moves money from a traditional retirement account to a Roth IRA. The taxable portion generally increases income in the year of conversion.
Converting some of the balance may reduce future RMDs from traditional accounts; a Roth IRA has no lifetime RMDs for its original owner.
The age at which RMDs begin depends on your birth year, and an RMD due for the current year cannot itself be converted…
The skinny
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