If you're weighing a year-end Roth individual retirement account conversion, waiting too long could be risky, financial experts say.
Roth conversions move pretax or nondeductible IRA funds to a Roth IRA, which can start tax-free growth.
The strategy has become more popular, with a 46% year-over-year increase during the second quarter of 2024, according to Fidelity.
Some investors want to pay Roth conversion taxes now while there are lower tax brackets because the current rates are scheduled to sunset after 2025 without action from Congress.
However, it's difficult to predict future tax law changes with uncertain control of the White House, the Senate and the House of Representatives.
Persons:
Roth
Organizations:
Roth IRA, Fidelity, Finance, White, Senate