Roth IRA Conversions

Additional Resources

Why a Roth conversion might make sense for you:

  • Earnings may be withdrawn free from federal taxes under certain circumstances.
    • The ability to withdraw Roth IRA assets tax-free can diversify how your retirement assets are taxed, allowing for more flexibility to manage taxable income in retirement.
  • With a Roth IRA, unlike Traditional IRAs and employer retirement plans, there is no requirement to begin taking taxable required minimum distributions (RMD) at age 72. Please note: Beginning in the year you reach age 70½ (if you were born before July 1, 1949) or age 72 (if you were born after June 30, 1949) you must take withdrawals, or RMDs, from your retirement accounts (other than a Roth) or be subject to a 50% penalty tax.
  • With a Roth IRA you may potentially reduce or eliminate the taxes your beneficiaries will have to pay in the event of your death.

Other factors to consider

  • Converting your retirement savings account to a Roth IRA may prove beneficial if:
    • You expect to be in a higher tax bracket during retirement.
    • You're planning to keep the money invested in the Roth IRA for at least five years.
    • You can pay the conversion taxes from assets other than those being converted.
  • Converting to a Roth IRA may not be beneficial if:
    • You expect to be in a lower tax bracket during retirement.
    • You expect to need the assets in the next five years.

To start the Roth IRA conversion process

  • Contact your MissionSquare Retirement Plans Specialist or call Plan Services at (800) 669-7400.

Before making the decision to convert retirement assets to a Roth IRA you should consult with a qualified tax advisor.

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