<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Here’s everything you need to know about how to choose the right retirement plan"/><p class="gnt_ar_b_p">To convert or not convert traditional retirement savings into a <a target="_blank" href="http://www.usatoday.com/money/blueprint/retirement/is-a-roth-ira-worth-it/" rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">Roth IRA</a>? That’s likely a big question Generation X will have to answer soon as they head into retirement, experts say.</p><p class="gnt_ar_b_p"><a target="_blank" href="http://www.usatoday.com/money/blueprint/retirement/what-is-a-roth-ira/" rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">Roth accounts</a> offer retirees a lot of benefits that traditional 401(k)s don’t. Roth accounts have tax-free withdrawals, aren’t subject to required minimum distributions (RMD) and aren’t taxable to heirs.</p><p class="gnt_ar_b_p">But <a target="_blank" href="https://home.treasury.gov/system/files/131/WP-91.pdf" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">Roth IRAs didn’t exist until 1997</a>, a decade or more after Gen X (born between 1965 and 1980) started working, which means there’s a good chance most of Gen X savings are in traditional accounts. With retirement closing in, they may be scrutinizing their retirement accounts and wondering if they should convert their savings to a Roth to better manage taxes in retirement.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Like most other financial decisions, “it’s a very personal decision and has to be evaluated individually,” said Jaime Eckels, wealth management partner at Plante Moran Financial Advisors.</p><p class="gnt_ar_b_p">Below are some things experts say you should know and consider when deciding.</p><p class="gnt_ar_b_p"><strong>Protect your assets:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (hys)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/savings/best-high-yield-savings-accounts/">Best high-yield savings accounts of 2023</a></p><h2 class="gnt_ar_b_mt">What is a Roth conversion?</h2><p class="gnt_ar_b_p">A Roth conversion means you’re moving traditional pre-tax retirement savings to a Roth IRA. You can convert the full amount in your traditional account or just a portion of it.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Since you’ve never paid tax on the money in your traditional account, you’ll have to <a target="_blank" href="http://www.usatoday.com/money/blueprint/retirement/what-taxes-do-you-pay-on-roth-ira-conversion/#:~:text=A%20Roth%20IRA%20conversion%20moves%20money%20from%20a%20pretax%20account,with%20an%20upfront%20tax%20liability." rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">pay taxes on it</a> when you move it to a Roth account, which is funded with after-tax money. The...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/personalfinance/2024/07/11/roth-ira-conversions-gen-x-retirement-options/74346959007/">Read more <span>➤</span></a> </div>
