
Why a Roth conversion may not be right for you
Roth conversion is simply the act of converting a traditional IRA account (Or pre tax workplace retirement plan) into a Roth IRA account. As mentioned above, a traditional IRA account is usually funded using pre-tax dollars, meaning the distributions you take from a traditional IRA account in retirement are taxed as ordinary income. A Roth IRA is created using after-tax dollars, meaning the distributions you take from a Roth IRA account in retirement are tax-free (because tax has already been paid).