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Ask The Expert: Converting to a Roth

Q: I am 75 years. Should I convert to a Roth IRA?
See other answers from this expert. 314 out of 500 people found this useful.
A:

There is a high likelihood the answer is no. The reason is because you would incur taxes on the conversion amount but will likely not live long enough to compound enough tax free gains to offset the tax loss up front. With that said, there are estate planning differences between a Roth and regular IRA that impact your beneficiaries so there may be other mitigating circumstances to consider depending on your personal situation and goals. This balance between tax considerations and estate planning considerations would have to be carefully weighed in the context of your personal goals and financial situation.

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Important Roth Information

Each year, the IRS updates the rules for Roth IRA. Here are all the details for 2013 & 2014: