From Yahoo Finance: 2025-03-22 08:30:00

Steven Jarvis, CPA answers a question from a 70-year-old couple with a comfortable retirement income and substantial savings. He explains that it is not too late for them to consider a Roth conversion, emphasizing that the decision should align with their legacy goals and tax implications. Seeking advice from a financial advisor is recommended.

The article explores the pros and cons of Roth conversions based on different legacy goals. It suggests that converting to a Roth may be beneficial if the goal is to leave tax-free wealth to beneficiaries. However, if the intention is to donate to charity, converting to a Roth could result in unnecessary tax payments. Considering these factors is crucial in making an informed decision.

For individuals in their 70s with a secure retirement income and substantial savings, the decision to convert to a Roth should be carefully evaluated. Factors such as current tax brackets, future tax implications, and estate planning goals play a significant role in determining the suitability of a Roth conversion. Seeking guidance from a financial advisor can help navigate this decision effectively.

Read more: We’re 70 With a $1.4M IRA. Does a Roth Conversion Still Make Sense?