The Roth Conversion Mistake Too Many Pre-Retirees Make
If you don't manage conversions the right way, they could cost you.
Overview
If you're nearing retirement and find yourself sitting on a lot of money in a traditional IRA or 401(k), you may have a problem on your hands. Granted, some might say it's a good one to have. But a large traditional IRA or 401(k) balance means you may be looking at sizable required minimum distributions, or RMDs.
The problem is that RMDs can drive up your taxes and cause other consequences, too, such as having to pay more for Medicare. So it's important to be mindful of ways to minimize RMDs.
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Details
Source
Originally published at www.fool.com.
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