ROTH IRAS Do Not Have To Be A Young Person's Game - Pt. 3

May 03, 2019 Blog No Comment

5 reasons to consider a Roth IRA conversion in your 50s.

Reason 3: YOU PLAN TO MOVE WHEN YOU RETIRE

Are you thinking of retiring to a high-tax state like New York, New Jersey or California? Are you currently living in a state where taxes are lower? If you answered yes to these two questions, converting at least part of your Traditional IRA to a Roth IRA before you make the move might make sense.

If you live or plan to retire to Florida or one of the other 8 states (Alaska, Nevada, Tennessee, Texas, Washington, Wyoming, South Dakota, and New Hampshire) where there is no state tax, the reasons for converting a Traditional IRA to a Roth IRA diminish. Plus some states don’t tax retirement income or Social Security income. Different states treat Roth IRA conversions differently, so get expert advice before you make a Roth IRA conversion.

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