IRA v. Roth IRA

CNBC has this interesting column laying out some rules of thumb to consider if you’re contemplating converting a regular IRA into a Roth IRA. The columnist’s 6 rules of thumb are:

  • Convert to a Roth if you will be in a higher tax bracket later
  • Convert to a Roth only within your current tax bracket
  • Convert to a Roth only in the state you know you will be for life
  • The sooner in the year the better
  • Concentrate the stock positions in the Roth and the conservative positions in the traditional IRA
  • Set up different Roth IRAs at the same time (and use varying investment strategies for them)

What do you think? How does a traditional IRA compare to a Roth IRA? When does a Roth IRA conversion make sense? How have you handled your retirement portfolio?

My firm has experience working with individuals and families at all stages of the retirement spectrum. If my law firm can help you or your family with your estate planningelder lawasset protectionbusiness law needs, or digital estate planning, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment.

IRS CIRCULAR 230 Disclosure: Unless expressly stated otherwise, any U.S. federal tax advice contained in this blog post or links is not intended or written by Johnson Law KC LLC to be used to avoid IRS or other tax penalties, and any tax advice cannot be used to avoid penalties that may be imposed by the IRS.

(c) 2013, Stephen M. Johnson, Esq.

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One thought on “IRA v. Roth IRA

  1. Pingback: Stephen M Johnson | Find a Lawyer

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