Episode 370: The 3 Questions You MUST Answer BEFORE Doing a Roth Conversion

David McKnight addresses three key questions you must be able to answer before executing a single Roth conversion. Too many people go for Roth conversions without a game plan – this is something that can lead to overpaying taxes and running out of money sooner than anticipated. David points out that if you can't answer the three key questions, you should stop and reevaluate because guessing here can cost you big. "What's the total amount I should convert from my IRA or 401(k) to tax-free?" is the first and most critical of the three questions. Remember, the goal of a Roth conversion isn't to get your tax-deferred bucket to zero at all costs. It's to get to the right amount of tax-deferred dollars shifted to tax-free, the amount that allows you to stay in the 0% tax bracket in retirement. "How much should I convert each year?" is the second question and is about pacing your conversion so as to avoid unnecessary exposure to higher tax brackets. The goal is to convert to Roth slowly enoug...