There are many reasons why some taxpayers would be suitable candidates for the ROTH conversions. But, the four most compelling reasons as follows;
- ROTH Conversions would generally appeal to the taxpayers who have just started their career as they would gain from tax-free growth as these assets would be invested over a long period of time.
- Roth conversions would be very beneficial in the current poor economic circumstances with stocks having tumbled! Those Stocks and other Assets with a potential for future high growth would be ideal for a ROTH conversion.
- Many financial experts have been advising “Seniors” to convert some of their retirement assets into a ROTH so that they may avoid the required minimum distribution (RMD) and leave assets to their children or grandchildren.
- Taxpayers who think that income tax rates are likely to be higher in the future may want to consider converting a small amount of their retirement assets to Roth IRAs.
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