Converting to a Roth IRA
Let’s Do This Together
- There is an election coming up in November.
- Eventually, Congress will wake up to the need to reduce our massive national debt.
- The only ways to accomplish #2 are:
- Take an axe to government spending.
- Increase income tax rates.
That’s it. Just two choices.
So Now What?
We know congressmen and women are not likely to slash spending. This means no matter who wins in November, the waiter will bring the check to our table sooner or later, and we’ll have to pay the bill. How much is the bill? As of last month, our nation’s debt was $34 trillion and is rising. That’s $34,000,000,000,000.00 (alright, who ordered lobster?)
One way or another, we need to bring our debt down if America hopes to remain a world power.
- If taxes go up (as many expect), what impact will that have on a Traditional IRA?
- If you still have a Traditional IRA, which is taxed when funds are withdrawn, you may be in for a nasty tax surprise when you take IRA distributions.
I understand if we get two people in a room, I am sure we will hear:
- Three opinions about who the winner will be in November.
- Six opinions about when income taxes will increase.
No matter when taxes increase, the longer the increase is delayed, the greater the increase will be needed. What can you do now? Convert all or part of your Traditional IRA to a Roth IRA before November.
-Dennis Blitz
