How a Roth Conversion in 2021 can save you 18% in federal taxes

| January 28, 2021
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Roth conversions in 2021 could save you 18% in federal taxes or MORE if the government decides to increase taxes in the future. Roth conversions are the act of converting a Traditional IRA into a Roth IRA. You can convert freely however much you want; however, you must pay the tax on the money that you are converting into a Roth. Paying taxes on the money now at historically low tax rates can potentially save you a ton when you will be forced to pay the taxes later in retirement. By waiting, you are deferring the tax payment but also the tax calculation! This may be your last chance to save on taxes before you start taking income in retirement.

 

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