Tax Considerations of Converting to a ROTH IRA
14 Jun Tax Considerations of Converting to a ROTH IRA
Posted at 00:00h
by John R. Dundon II
1. The tax bite is too big.
2. Retirement is too close.
3. Savings are too concentrated in one place.
4. Tax brackets often change in retirement.
5. The income can change your tax bracket now.
If an investor is receiving Social Security benefits, the spike in income could force them to pay taxes on their Social Security money. It also could interfere with efforts to receive financial aid for children’s college tuition. And if you are going through a divorce, the additional income could affect the settlement.
John R. Dundon, EA – 720-234-1177