A better approach to Roth conversions

November 20, 2018

 
Boris Wong

Boris Wong

An episode in Vanguard's Investment Commentary series

The U.S. retirement system allows investors to choose when to pay taxes on at least some of the money they've saved for their golden years. Because of the new, lower federal income tax rates, many financial planners think investors should further consider paying taxes now rather than later. But when is that the right decision?

In this 14-minute podcast, Vanguard Wealth Planning Specialist Boris Wong discusses when Roth conversions make sense from a tax perspective. Wong describes how investors might estimate their break-even tax rate for a Roth conversion, and he outlines some of the IRS rules involved.

For more information on this topic, read our research A "BETR" approach to Roth conversions.

To subscribe to Vanguard’s Investment Commentary series, visit iTunes®.

Note:

  • All investing is subject to risk, including the possible loss of the money you invest.

 

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