I'm 65 With $830k and Social Security. Is It Too Late for a Roth Conversion?

Core Insights - Roth conversions allow individuals to transfer pre-tax savings into a Roth IRA without age restrictions, enabling tax-free growth on investments [1][5] - The financial benefits of a Roth conversion may be limited for retirees, as the costs associated with the conversion can outweigh the advantages [2][8] - Consulting a financial advisor is recommended for making informed decisions regarding retirement accounts and Roth conversions [3][7] Group 1: Roth Conversion Process - A Roth conversion involves transferring funds from a pre-tax retirement account, such as a 401(k) or traditional IRA, to a Roth IRA, which requires paying income taxes on the converted amount [5][6] - Contributions to pre-tax accounts provide immediate tax deductions, while Roth IRA contributions do not offer tax benefits upfront but allow for tax-free withdrawals in retirement [6][7] Group 2: Tax Implications - The entire amount converted in a Roth conversion is added to the individual's taxable income for that year, impacting tax liabilities [8] - Individuals under 59 ½ years old need alternative liquidity sources to cover taxes incurred from the conversion, while those 59 ½ or older can use funds from their portfolio, which may reduce long-term growth potential [8]