Can you convert a tax-deferred 401(k) to a Roth IRA without paying deferred taxes? No, you can’t avoid taxes, but you can reduce them. Strategies include spacing out conversions over years, converting in low-income years, and making conversions before anticipated tax rate increases. Consider working with a financial advisor for personalized advice.

To reduce tax consequences of a Roth conversion, consider executing a partial conversion or converting in a low-tax year. Pay taxes with non-retirement assets to maximize the amount moved into the Roth account. A financial advisor can help you navigate the process and make informed decisions about your retirement accounts.

Maintain an emergency fund in a liquid account to cover unexpected expenses. It should be easily accessible and not at risk of significant fluctuations. Compare high-interest accounts to earn compound interest while keeping your funds accessible for emergencies.

If you’re a financial advisor looking to grow your business, consider SmartAsset’s AMP platform for lead generation and marketing automation solutions. Susannah Snider, CFP®, offers financial planning advice and answers reader questions. Email [email protected] with your questions for a chance to have them featured in a future column.

Read more at Yahoo Finance: How Can I Complete a Roth IRA Rollover Without a Large Tax Bill?