Roth Conversion

Alan19 Member Posts: 4 Newcomer
edited January 15 in Retirement Income

I am 63 years old. Is it a good idea to begin to withdraw small amounts from Traditional IRA and covert it to a Roth IRA?



  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74

    Hello, Alan19!

    That's a great question!

    Converting amounts from your traditional IRA to a Roth IRA can be a good financial decision. However, there are a lot of individual circumstances that need to be considered.

    Thus, I recommend reaching out to a financial advisor or tax planner for assistance in determining how much, if any, you should convert.

  • darbillw
    darbillw Member Posts: 4 Newcomer

    IMHO, convert all you can. I am 69 and will be converting about 15,000 this year. The caveat is you want to make sure it doesn't affect your tax liability. I "pretend" to be doing a conversion once all my other tax data is entered into FreeTax and see what effect (if any) the conversion has on my refund or payment amount. I am NOT a financial advisor or tax planner, but my wife thinks I should have been! If it causes pain, then it depends how much pain can you handle. You will pay taxes on the traditional IRA, so is it better to do it now or later. Make sure you have everything in your tax return before playing with scenarios. FreeTax is great for this type of exercise.