What is a Roth conversion, and why should you – or shouldn’t you – do it?
Traditional IRAs and most workplace retirement plans, like 401(k)s, for example, are tax-deferred. That sounds great when you’re adding money to them: no taxes now, deferred growth, wuhoo! But tax-deferred is NOT tax-avoided. The tax bill always comes due. The world of IRAs is super-complex, as is the world of income-tax brackets. They come together in a perfect storm of complexity. HOWEVER, there are some easier pieces to explain. Without getting into every scenario and […]