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A Roth Conversion Could Help You Save On Taxes

February 23, 2020

As you’re doing your taxes for 2019, I would encourage you to take a look at how taxes are gonna impact your retirement accounts. And if you look at your retirement accounts and you see that the majority of your money is inside TSPs, 401ks, and traditional IRAs, and that the minority of your money is inside Roth IRAs and tax-free retirement accounts, then I would seriously encourage you to look at what’s called a Roth conversion: purposely paying tax now.

Withdrawing money out of your retirement accounts today, not spending it but purposely paying tax now, so that you eliminate tax forever, pay your fair share today, and eliminate RMDs forever.

Taxes are the biggest expense of retirement and we want to make sure we’re paying our fair share, but not more than we need to.