There are some financial advisers who are saying that now is a good time for savers to shift from a traditional IRA to a Roth account. Contributions into a traditional IRA are tax-free, but the withdrawals are not. With a Roth IRA the taxes are paid up-front, but the distributions made during retirement are tax-free. This column goes into some more detail describing the differences between traditional and Roth IRAs. There are many factors that financial planners will need to consider when deciding whether to recommend a traditional to Roth conversion to a client. This article points out the importance of being strategic with retirement planning. People that want to get more specific advice that applies to their own situation should schedule a meeting with an experienced estate planning adviser.
See Rebecca McClay, Converting Your Traditional IRA to a Roth: A Balancing Act, The Street, February 8, 2016.
