Stock market volatility is alive and kicking, but that doesn’t have to be a bad thing, even if you’re not a day trader. Instead of buying on the dip, investors facing hefty future tax consequences on their retirement savings may want to consider a Roth conversion.
This occurs when you move money out of a traditional IRA or 401(K), 403(b) or 457(b), pay taxes on the withdrawals and shift it into a Roth IRA to enjoy future tax-free growth. Beyond the potential for tax-free gains, Roth IRAs have no required minimum distributions and allow tax-free withdrawals after five years and the age of 59-1/2.
