Should I Convert 20% of My IRA to a Roth Each Year to Reduce Taxes and RMDs?

Transferring funds from a pre-tax retirement account such as an IRA to an after-tax Roth IRA is a move many retirement savers might want to consider. A Roth conversion, as the move is called, has many benefits. It can help you avoid required minimum distributions, or RMDs, in retirement, as well as taxes on your retirement withdrawals. There are even some estate planning benefits. Gradually converting IRA funds to Roth funds is a popular refinement of the technique, because it can save on taxes now while p ...