How can a Roth IRA conversion potentially help me provide a greater financial legacy to my heirs?
When you convert retirement savings to a Roth IRA, you pay taxes in the year of conversion based on the current federal income tax rates. Once converted to a Roth IRA, future earnings generally accrue on a tax-free basis (versus a tax-deferred basis as with traditional IRA savings). What’s more, unlike traditional IRA savings, Roth IRA savings are not subject to mandatory distributions at age 70½. Because Roth IRA assets are not subject to mandatory distributions during your lifetime, the Roth IRA allows you to extend the tax-sheltered life of your retirement savings, which can potentially result in a greater financial legacy for your heirs.
Related Questions
- I am interested in helping Duneland Lutheran, however, I dont have any children, Im not in the financial position to contribute to Duneland Lutheran High School, and/or Im not a Lutheran. What can I do to help?
- Will increased fees place greater burdens on industry? What is Health Canada doing to help smaller companies?
- Where should I look for financial help and support?
