Why Roth Conversion

Build your tax-free buckets with a Roth conversion. Here are a few reasons why you might consider this strategy.

Step 5: Tax Strategy

Converting from a traditional IRA to a ROTH IRA is a taxable event.

A ROTH IRA offers tax free withdrawals on taxable contributions.

To qualify for the tax-free and penalty-free withdrawal or earnings, a ROTH IRA must be in place for at least five tax years, and the distribution must take place after age 59 1/2 or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, ROTH IRA distributions may be subject to state taxes.