3 Reasons to Convert an IRA to a Roth

You may have heard about this strategy or thought about giving it a try but aren't sure if it's right for you. To find out, here are the basics of how it works and who is best suited to this tax-planning possibility.

(Image credit: Stacy Vitallo)

IRAs and 401(k)s are a tremendous way to grow your nest egg for retirement. You avoid paying taxes on the money you put into these accounts during the time you are working and are most likely in a higher income tax bracket. The idea is to defer paying taxes until you are in retirement, no longer earning an income, and potentially in a lower tax bracket. The tax advantages allow you to turbocharge your growth.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Ray E. LeVitre, CFP®
Founder, Managing Partner, Net Worth Advisory Group

Ray LeVitre is an independent fee-only Certified Financial Adviser with over 20 years of financial services experience. In addition he is the founder of Net Worth Advisory Group and the author of "20 Retirement Decisions You Need to Make Right Now."