Roth IRAs are tax-free. Traditional IRAs are tax-deferred. Understanding the ramifications of tax-free versus tax-deferred in your retirement plan is a major factor in why Roth IRAs are often superior to traditional IRAs.
This is part two in a three-part series on Roth conversions. The first article — “10 reasons not to do a Roth conversion” — appeared on June 8. Today’s article covers the benefits of Roth conversions. Part three, to be published in August, will cover strategies for Roth conversions.
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