To Convert Or Not To Convert: Roth IRAs

Any decisions you make about converting your Roth IRA should be evaluated in light of taxes and your entire estate plan. You need to consider three primary concerns before electing to convert your Roth IRA.

Concern #1: Are You Getting the Most Out of Your IRA?

If you do some advance planning, a Roth conversion can benefit multiple generations, especially if you have a spouse. If  your spouse decides that he or she doesn’t need the assets inside the Roth because there are other forms of support, then the second spouse could disclaim receiving those benefits and hand it over to future generations. In this case, children or grandchildren would have the required distributions based on their life expectancy, allowing for a lot of tax-free growth.