Here's 1 Good Reason Not to Do a Roth Conversion Ahead of Retirement
It's a move that makes sense for a lot of people, but it may not be optimal for you.
Overview
Roth conversions have become an increasingly popular retirement planning strategy, and for good reason. By moving money from a traditional IRA or 401(k) into a Roth IRA, you pay taxes on the converted amount up front in exchange for tax-free growth in your account and tax-free withdrawals later.
The latter is important, because once retirement arrives, you feel compelled to budget carefully. Not having to allocate a portion of your retirement plan withdrawals to taxes could be huge.
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Originally published at www.fool.com.
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