Roth Conversions Look Simple -- Until You Hit These 3 Hidden Traps

If you retire with savings in a traditional IRA or 401(k), you may be looking at a couple of unpleasant things. First, you'll have to pay the IRS taxes on your withdrawals. And while this shouldn't come as a surprise, it can be a nuisance and point of stress.Secondly, with a traditional IRA or 401(k) plan, you can't just let your money grow indefinitely. You'll eventually be forced to take required minimum distributions, or RMDs, which could drive up your taxable income and have other unwanted consequences.That's why many people opt to do a Roth conversion ahead of retirement, or early on in retirement before RMDs start. With a Roth conversion, you move funds from a traditional retirement account into a Roth IRA.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool