IMPORTANT QUESTION FOR YOUR FINANCIAL ADVISOR

Question:  Should I/Can I convert my traditional IRA to a Roth IRA?

Many factors complicate this decision.  For example, one must consider:

·         Will I be in a lower tax bracket after retirement?

·         Will tax rates continue to climb in coming years? By how much?  How often?

·         Will I continue to work after “official” retirement?

·         Will I need the income from my IRA or am I trying to accumulate assets for my heirs?

·         If I convert to a Roth IRA, how will taxes due on my traditional IRA at conversion time be calculated and paid?

·         How old will I be at the time of conversion?  Most professional financial advisors agree that the advantage of converting to a Roth generally decreases as the owner ages.

In short, there is no simple formula for making this important decision.  Your IRA strategy must be integrated with your overall financial plan and your estate plan.  Seek the advice of a professional financial planner as you wrestle with this important decision.