Should I convert my traditional IRA
to a Roth IRA?
You need to consider a few things before you convert to a Roth IRA. For example:
Conversion might be a good idea if:
- You didn't take tax deductions on most of the money you contributed to your current IRA;
- You think you want to wait until after 70 1/2 to start getting money out of your IRA;
- And if you think you'll be in the same or a higher tax bracket when you retire.
Conversion might not be a good idea if:
- You did take a tax deduction when you contributed to your current IRA (this is because when you convert, you'll have to pay taxes on it).
You should ask your tax advisor and the professionals at BBVA Compass to help you make this decision.
