HOW TO FINANCE A ROTH CONVERSION: MAKING THE SWITCH TO A ROTH MAKES SENSE FOR SOME, AND THERE ARE PLENTY OF WAYS TO PAY THE TAX BILL

摘要

NATHAN AND STACEY, federal workers in their thirties, are excited about the prospect of transforming their already sizable IRAs into tax-free retirement income. But the price could be steep. It will cost about $100,000 in federal and state taxes to convert the $250,000 they have stashed in their traditional IRAs to Roth IRAs this year, when income limits on conversions disappear.