Do you currently have money in a retirement account, such as a Traditional IRA, Rollover IRA, old 401(k), or other employer-sponsored plan?
Making the decision to convert is complex, so further exploration and a closer look at your personal situation will likely be helpful. Take a look at the suggested next steps to see how Schwab can help you think through the decision.
If you don’t have savings in an eligible retirement account, you don’t currently have any funds that can be converted to a Roth IRA.
For personal assistance with building a plan for your retirement, contact a Schwab investment professional at 888-298-6558.
Based on your responses, it looks as if a full or partial Roth IRA conversion could make sense for you. Here’s why:
Since you have only one retirement account that contains only post-tax contributions, you’ve already paid income taxes on them. If you convert these funds, you’ll gain the benefits of a Roth IRA and only be required to pay taxes on earnings—not on your contributions. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.
Based on your responses, it looks as if a full or partial Roth IRA conversion could make sense for you. Here’s why:
You indicated that you plan to leave some or all of your IRA funds to your heirs. With a Roth IRA, you won’t have to take required minimum distributions (RMDs), and your beneficiaries can make income-tax-free withdrawals during their lifetimes. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.
Based on your responses, it looks as if a Roth IRA conversion may not make sense for you at this time. Here’s why:
No matter your age, leaving your assets in your converted Roth IRA for at least five years can help you recoup the costs of conversion and give you more time for potential tax-free growth. Additionally, if you’re under age 59½ and withdraw the converted funds before the five-year window is up, you could be charged an early withdrawal penalty. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.
Based on your responses, it looks as if a Roth IRA conversion may not make sense for you at this time. Here’s why:
If you think your income tax rate will be lower when you make your first withdrawal, higher future taxes may not be a concern. However, it’s important to keep in mind that your income tax rate may rise in the future even if your income is lower than it is now. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.
Based on your responses, it looks as if a full or partial Roth IRA conversion could make sense for you. Here’s why:
Because you can afford to pay all of the conversion taxes without dipping into your IRA funds, you won’t be compromising your opportunity to benefit from potential long-term growth. In addition, you’ll avoid the 10% early withdrawal penalty that would otherwise be applied if you withdraw funds before you turn 59½. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.
Based on your responses, it looks as if a full or partial Roth IRA conversion could make sense for you. Here’s why:
Even if you can’t afford to pay all of the conversion taxes on the total value of your IRA, you may want to consider a partial conversion. With this strategy, you could still benefit from some income-tax-free withdrawals in retirement, while paying less in conversion taxes. Of course, making the decision to convert is complex, and there are many factors to consider. Take a look at the suggested next steps to see how Schwab can help you think through all the considerations.