Short YouTube excerpt in which CFP® Craig Wear explains the primary benefits of Roth conversions: tax-free growth and tax-free withdrawals in retirement, and reduction of required minimum distributions (RMDs) that otherwise create taxable income.
Roth conversions? Well, number one, they are tax they do provide tax free growth and withdrawals in retirement once you get the money into a Roth. So to some telling, you could actually say, well, gosh, anything I get to a Roth is a good deal because I get tax free growth. And that's not a false statement at all. And I should say, once the funds are in the Roth, they get to grow. And whatever investments you have, they get to grow totally tax free. And that can really have a significant decrease in your tax burden in your in retirement because you're going to get rid of some rmd, some required minimum distributions that are going to cause taxation for the rest of your lifetime.
