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The Hartford Courant, Conn., Money Talk Column.
Byline: Matthew Lubanko
Sep. 28--QUESTION: I am 52 years old. I have about $50,000 saved in a regular IRA, which I am thinking about changing to a Roth IRA.
What possible benefits and consequences should I consider before I convert my regular IRA to a Roth IRA? And how can I tell if the benefits outweigh the costs? --J.S., Simsbury
ANSWER: The Roth IRA remains the best retirement savings plan on the planet.
But converting a regular IRA to a Roth IRA can be expensive. It entails a tax bill right up front. A large tax bill can take away cash that might otherwise be invested or spent elsewhere. That tax bill today might even rob you of retirement savings tomorrow -- even though it should lower the taxes you pay in future years.
Despite all the possible drawbacks, a Roth IRA conversion is worth exploring at least once a year.
Roth IRAs protect dividends, interest income and capital gains from immediate taxation. Withdrawals of principal and earnings taken after age 59 1/2 -- if the account…
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Source: HighBeam Research, The Hartford Courant, Conn., Money Talk Column.
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