Episode notes
In this episode of Financial Advisors Say The Darndest Things, host A.B. Ridgeway breaks down a complex financial decision faced by many: should you roll your traditional 401k into a Roth? A listener from Dallas, Texas, asks whether it makes sense to convert her traditional 401k, with a large tax bill looming over her decision. A.B. provides expert insights into both the benefits and the potential drawbacks of making such a move.
Key Takeaways:
- Tax Implications: Rolling over a traditional 401k into a Roth triggers taxes immediately, which could amount to a significant bill depending on the total assets. In this case, it could be as high as $300,000.
- Long-Term Planning: If you expect a higher tax rate in the future, converting to a Roth 401k could save you on taxe ...
Keywords
traditional 401kroth 401kroth in plan conversions