Over the past few months, the Biden-Harris administration has already made some significant changes and more could be on the horizon. Some of these plans could have a big impact on retirees, but there are both challenges and opportunities if you know where to look. Converting funds from a traditional retirement account into a Roth IRA could become even more beneficial considering new required minimum distributions (RMD) guidelines and potential tax law changes. In this Retirement Daily article, Roth Conversions Could Become Even More Beneficial for Retirees, Covisum® Founder and President, Joe Elsasser, CFP®, examines a few potential changes and planning opportunities.
"Looking at the planned tax changes, now is the time to consider taking advantage of the historically low tax rates by converting to a Roth before they take effect. Roth conversions can be a fantastic tool, particularly for those in a low tax bracket. A good financial advisor can help you determine the impact these changes could have on your retirement strategy. It’s important to be aware that some versions of these proposals are likely to pass and to plan accordingly."