Financial advisors should offer to help retired (or soon-to-retire) clients evaluate whether it makes sense to convert part or all of a qualified plan or Traditional IRA to a Roth IRA.
The conversion from a qualified plan can occur at any trigger event including retirement, separation from service or an in-service distribution.
Here is a formula that may help to simplify the Roth conversion decision: Given constant rates for income tax and investment earnings, the future value of pre-tax money compounded and distributed on a taxable basis = the future value of after-tax money compounded and distributed tax-free.
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