Is a Roth conversion worth it?

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A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA, and you pay ordinary income tax on the converted amount this year in exchange for tax-free growth and withdrawals later. It tends to pay off when your tax rate today is lower than it will be in retirement — for example in low-income years before Social Security and required minimum distributions begin. Watch the tax bracket the extra income pushes you into and any IRMAA Medicare surcharge it can trigger.

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