Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

The Benefit of a Roth IRA Conversion

20 Mar 2024 · 1 min

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0:30

Short YouTube video by Craig Wear, CFP® describing the benefits of Roth IRA conversions for people under age 59½. The speaker highlights that conversions are especially advantageous when the taxpayer has assets outside the IRA to pay the conversion tax, since distributions converted are taxable when moved into a Roth IRA.

Chapters

If you're under age 59 and a half. Roth conversions can be phenomenal and create some huge benefits if you have assets outside of your IRA with which to pay the taxes. So when you do a conversion, you take a distribution from your IRA and it goes over and it's taxable, and it goes over to a Roth ira. And if you have money sitting outside of the IRA to pay the taxes with, then it's a great transaction.