Roth IRA Utopia: Is Now the Right Time to Convert?

With the new tax law in place, there are several reasons why converting from a traditional IRA to a Roth could make sense for you now. But here are five critical points you need to keep in mind.

(Image credit: laflor)

To convert or not to convert? That’s the big question savers should be asking themselves right now as we all adjust to the major reforms of the Tax Cuts and Jobs Act, the most extensive tax rewrite enacted in decades.

If you’ve been thinking about tax diversification — moving your money into more than one savings bucket to avoid a huge tax bill in retirement — the act’s new tax brackets and lower tax rates may provide the nudge you needed to convert a traditional IRA to a Roth IRA.

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Isaac Wright, ChFC
President, Financial Dynamics and Associates

Isaac Wright, president of Financial Dynamics & Associates, is a financial adviser and licensed insurance professional with a focus on retirement planning and asset preservation for families and retirees. He has assisted families and retirees in reaching their financial, retirement and estate planning goals for more than 15 years. He is the author of Navigate Your Way to a Secure Retirement.