David has a large investment in IRAs. He’s concerned that he may need to convert some of these funds into a Roth IRA to avoid a tax penalty. Wes discusses the pros and cons of the Roth conversion strategy.

Original airdate: March 11, 2018 – Hour 2, Call 2.

Wes Moss is the host of MONEY MATTERS – the country’s longest-running live call-in, investment and personal finance radio show – on News 95-5FM and AM 750 WSB.

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Please note, this information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. There will be periods of performance fluctuations, including periods of negative returns. Past performance is not indicative of future results when considering any investment vehicle. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions….(read more)

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When it comes to retirement planning, one of the most important decisions you can make is whether to convert your traditional Individual retirement account (IRA) to a Roth IRA. A Roth IRA is a retirement account that allows your contributions to grow tax-free, and when you make withdrawals in retirement, you don’t have to pay taxes on the money. Converting your traditional IRA to a Roth IRA can be a great way to save money in the long run, but it’s important to understand the implications of the conversion before you make the switch.

The first thing you should consider when deciding whether to convert your traditional IRA to a Roth IRA is the tax implications. When you convert your traditional IRA to a Roth IRA, you’ll have to pay taxes on any money you’ve accumulated in the traditional IRA. This means that if you have a large balance in your traditional IRA, you could end up owing a significant amount in taxes.

You should also consider your income when deciding whether to convert your traditional IRA to a Roth IRA. If you’re in a high tax bracket, you may be better off leaving your traditional IRA as is. However, if you’re in a lower tax bracket, you may be able to save money in the long run by converting your traditional IRA to a Roth IRA.

Finally, you should consider your age when deciding whether to convert your traditional IRA to a Roth IRA. If you’re younger, you’ll have more time to take advantage of the tax-free growth potential of a Roth IRA. However, if you’re older, you may not have enough time to make up for the taxes you’ll owe when converting your traditional IRA to a Roth IRA.

Ultimately, whether or not you should convert your traditional IRA to a Roth IRA depends on your individual circumstances. It’s important to consider the tax implications, your income, and your age before making a decision. If you’re unsure, it’s a good idea to speak to a financial advisor who can help you make the best decision for your retirement planning.