Should you consider a Roth IRA conversion?

Description

Abstract: Converting all or a portion of a traditional IRA to a Roth IRA can allow one to turn tax-deferred future growth into tax-free growth and take advantage of a Roth IRA’s estate planning benefits. As this article explains, a Roth’s exemption from minimum distribution requirements allows funds to continue growing tax-free for many years. And, since amounts converted into a Roth IRA face immediate taxation, heirs will benefit by receiving future distributions tax-free. But whether this makes economic sense depends on several factors.