Is Now the Right Time for You to Make a Roth Conversion?
by Michael Neuenschwander, CFP, CPA
Mar 18, 2021
4 minutes
If you pay attention to financial news, you’ve probably noticed that Roth IRAs — and Roth conversions, in particular — are having a moment.
OK, maybe it’s been more than a moment.
- SEE MORE Your Guide to Roth Conversions
Because of the tax-free growth that Roth accounts offer, they’ve always been an effective retirement planning tool. But two pieces of legislation have made this an especially advantageous time for many savers to do a Roth conversion:
- The Tax Cuts and Jobs Act of 2017, which lowered tax rates starting in 2018 and is set to sunset at the end of 2025; and
- The SECURE Act of 2019, which eliminated the popular “” strategy for those who plan to leave assets in a tax-deferred retirement account to their children or grandchildren.
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