Should I Consider Doing a Roth Conversion?

There are a lot of important considerations to weigh before doing a Roth conversion.  As a result of the current market condition and changes due to the SECURE Act, Roth conversions are becoming an important strategy that advisors are discussing with their clients.  This flowchart addresses some of the major decision points to help guide clients through the conversation.  This flowchart covers:

  • Changes in marginal tax rates for clients (or their heirs)
  • Ability to pay the associated tax with cash outside the retirement account
  • Five-year rule implications
  • Impact of income-based programs (IRMAA)