Who Are The Best Candidates For Roth IRA Conversions?

People with the largest IRAs are probably the best candidates for a conversion.

If they have the money to cover the initial tax implications — and they don’t need the money for a long time — that makes them an ideal candidate.

Not so much age. Someone in their 70’s or 80’s isn’t converting for himself because the life expectancy [on the Roth distribution] isn’t worth it.

It’s a great way to transfer wealth, especially if the client doesn’t need the money. High-income clients who didn’t qualify for this before are looking for this kind of thing.

Ed Slott, CPA