The current tax environment and potential for higher tax rates in the future create an opportunity for tax-smart planning.
Investors may want to consider certain strategies to hedge against the risk of higher taxes, including using a Roth IRA conversion.
Here are 10 Roth IRA strategies to consider.
A myriad of factors may suggest higher taxes soon. These include the expiration of most tax provisions in 2025, unprecedented federal budget deficits, and uncertain tax policy as a new administration and Congress gains hold in Washington.
It’s important for investors to work with a tax consultant or financial professional who has knowledge of their personal financial situation. A Roth conversion requires a thoughtful decision, since in most cases, taxable income is being generated on the transaction. The decision to complete a Roth conversion also cannot be reversed.
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