If you have a traditional IRA, you might benefit from converting some or all of it to a Roth IRA. A conversion can allow you to turn tax-deferred future growth into tax-free growth. According to Doeren Mayhew’s wealth management partner, Greystone Financial Group, it also can provide estate planning advantages: Roth IRAs don’t require you to take distributions during your life, so you can let the entire balance grow tax-free over your lifetime for the benefit of your heirs.

There’s no income-based limit on who can convert to a Roth IRA. But the converted amount is taxable in the year of the conversion. Whether a conversion makes sense for you depends on factors such as:

  • Your age
  • Whether the conversion would push you into a higher income tax bracket or trigger the 3.8 percent net investment income tax
  • Whether you can afford to pay the tax on the conversion
  • Your tax bracket now and expected tax bracket in retirement
  • Whether you’ll need the IRA funds in retirement

Doeren Mayhew partners with financial advisors at Greystone Financial Group to provide our clients with prudent advice to clarify investment objectives, arrive at optimal planning solutions, monitor performance and adapt to strategies as circumstances change. For more information, contact Doeren Mayhew or contact Greystone Financial Group in Michigan or Houston.