Be sure you understand the tax consequences before making the change Cathy Pareto, MBA and CFP®, is the founder and president of Cathy Pareto & Associates Inc. For more than twenty years, Cathy has ...

Unlike with traditional IRAs, Roths do not provide tax savings, so anyone converting such funds to a Roth must pay federal income taxes on the amount converted.

Think you're a savvy retirement planner? Here’s what you may be forgetting.

Converting a traditional individual retirement account to a Roth IRA is a powerful way to reduce taxes in retirement. Essentially, you’re choosing to pay taxes now in exchange for tax-free withdrawals ...

You'll owe income taxes in the year you convert ...

Having savings in a Roth account gives you access to tax-free withdrawals in retirement. It also means avoiding required ...

A Roth conversion can cause your Medicare premiums to surge. That's the bad news. The good news is that this surge will be temporary, depending on your future income. The better news is that you can ...

Retirees will generally have more insight into the wisdom of a Roth IRA conversion than younger workers, due to decreased uncertainty about future income paths and tax rates. Decisions about how and ...

Roth IRA conversions might seem complicated at first, but they're a great way for retirees to reduce their tax burden. Learn ...

At age 55 with $900,000 in a traditional individual retirement account (IRA), converting $100,000 per year to a Roth IRA could help reduce required minimum distributions (RMDs) and related taxes in ...

Because Medicare premiums are tied to income, converting a $235,000 retirement account to a Roth IRA has the potential to cause Medicare Part B premiums to increase. For many taxpayers, in fact, a ...