Roth IRAs are often described as one of the most powerful tools available in retirement planning. Tax-free growth, tax-free withdrawals, and flexibility? Those are hard to beat. So it’s no surprise that Roth conversions are frequently promoted as a good move for just about everyone.
But there’s a part of the conversation that doesn’t get nearly enough attention: the cost of getting money into a Roth in the first place. Roth conversions require an immediate, irreversible tax payment today in exchange for benefits that may take decades to materialize and may never fully pay off.
So when does a Roth conversion make sense and when might it work against you? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, on this week’s episode of Managing Your Financial Future!
