Roth Conversion

Alan19 Member Newcomer
edited January 15 in Retirement Income

I am 63 years old and was wondering if it is a good strategy to begin withdrawing small amounts from my Traditional IRA and convert it to a Roth IRA.



  • MatthewD
    MatthewD FreeTaxUSA Team

    Hi Alan19,

    That is a tax planning question that comes up all the time. That is out of our scope as a FreeTaxUSA agent and so hopefully a community member will also chime in.

    However, let me tell you why you may want to do that and take advantage of a Roth's non-taxability. As you know Roth distributions and earning are not taxable. The strategy is to contribute or convert to Roths when your taxable income is low in your early years. Then when you retire and your taxable income (and marginal tax rate) is higher, you can take out Roth distributions that are NOT taxable.

    Do you think your total taxable income will be higher when you retire? If so, then making some conversions now may be a good strategy.

    I strongly recommend you speak with a retirement manager. You may be able to sit down with them and go over some scenarios and figure that out for sure.