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Should I convert my traditional IRA to a Roth IRA?

I have most of my money in a traditional IRA. I am 66 years old and still working. Is it better to convert to a Roth IRA and invest? Am I able to transfer the stocks in the traditional IRA, or do I have to sell them?

Investing, IRAs, Stocks
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You're wise to consider Roth IRA conversion strategies.  Of course, with the limited information provided, I can only respond in general terms.  Assuming you have cash outside of the IRA to pay the taxes, it may make sense to explore conversions.  The biggest questions are: when will you retire and what should your post-work income total?  If you will be in a lower tax bracket in retirement, hold off on the Roth conversions.  Or, if you expect you'll use the Roth money soon, converting doesn't make a lot of sense as you'll have limited time to enjoy tax-free compounding.

On the other hand, if you expect to leave this account alone for many years (which is still possible with today's life expectancy figures), a Roth conversion can be a great option.  But again, I'd have to know more of your pre- and post-retirement taxable income situation to comment further.

You can convert assets "in-kind", so you don't have to sell assets you'd like to keep.  See here where it says, "You can convert your eligible retirement assets directly into a Roth IRA without going to cash investments first."  "Contributions" to a Roth do have to be in cash.

I would welcome the chance to help further, if you'd like.  Please contact me if I can be of additional assistance.

Regards,

John Madison

john@dayspringfm.com

dayspringfm.com

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