The only constant in life is change. So you might find that your current retirement account is no longer the best option for you.
If you find yourself in that position, consider converting your traditional IRA or employer retirement plan to a Roth IRA. You’ll pay federal income tax in the year of the conversion on any amount that hasn’t already been taxed.1
There are different implications depending on the type of account you wish to convert. It’s important to consider the benefits of each type of retirement plan, the options you have under each, and your own financial situation to make an informed choice. Check out Making sense of rollovers and transfers for more rollover basics. It may also be a good idea to check in with your tax advisor to help decide if a Roth IRA conversion is good for you.
1State income taxes on Roth IRA conversions vary. Check with your tax advisor.