3 Roth Conversion Mistakes Pre-Retirees Keep Making
There are tons of tax savings available for most Americans, and all it takes is avoiding a few simple mistakes.
Overview
The tax consequences of your retirement savings decisions can make your head spin. You have employer-sponsored plans, regular IRAs (individual retirement plans), Roth IRAs, and plenty of other account types you can park your savings in. For investors on the path to a seven-figure retirement portfolio, decisions made today could mean the difference in hundreds of thousands of dollars in tax payments when you are in retirement.
One tactic many savers will use as they enter the pre-retiree age bracket (what you might categorize as the 50s and 60s, depending on the person) is converting funds from a traditional IRA to a Roth IRA. This can help you avoid paying capital gains taxes in retirement.
Details
However, there are many mistakes you can make as a pre-retiree converting your savings from an IRA account to a Roth IRA. Here are three common mistakes pre-retirees make, and how you can avoid making the same in your own portfolio.
Source
Originally published at www.fool.com.