Craig Wear, CFP® outlines three critical questions investors should fully answer before starting a Roth conversion. In this excerpt he emphasizes the first question: determine how much of your total IRA/401(k) (retirement accounts) to convert—not necessarily all of it—and notes the decision depends on your income and any ongoing charitable (church) giving.
I mentioned at the, at the front that in addition to these three mistakes we watch people make, I wanted to give you three critical questions to consider that really need to be answered fully, I mean fully, before you really embark on a Roth conversion strategy. The first is you need to figure out how much of the total IRA 401k and money that you have should you convert. Not all of it needs to be converted, necessarily. That depends on your income. It depends on whether you have charities or churches that you like to give to, and maybe you're going to continue to give to.
