Roth Conversions Can Backfire. Here's How to Make Sure Yours Doesn't.
With the right strategy, you can get more mileage out of a Roth conversion.
Overview
If you don't like the idea of paying taxes on your retirement plan withdrawals or having to take required minimum distributions (RMDs), a Roth conversion is something to consider. By moving money from a traditional retirement account to a Roth IRA, you can set yourself up to enjoy tax-free gains and withdrawals without having to worry about RMDs.
But there's a trade-off. A Roth conversion is a taxable event. And it's a move that could cost you in more ways than one if you aren't careful.
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Details
Source
Originally published at www.fool.com.
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