The Roth Conversion Mistake That Could Cost You Tens of Thousands — and How To Get It Right

Now, financial experts are saying much of that money should be in a Roth IRA instead. Segarra is passionate about the subject of Roth conversions — and that passion came through in his response to Sofia. He affirmed that converting to a Roth IRA can be a smart move and offered strategies to minimize the tax hit. Roth Conversions Are Smart Because They Offer Tax-Free GrowthSegarra emphasized that Sofia’s goal of converting part of her 401(k) to a Roth IRA is a savvy decision — as long as she has the right plan. “Roth conversion strategies are a potent tool, where the person transfers money or assets from their 401(k) or traditional IRA to a Roth IRA account to ensure that their money continues to grow tax-free,” he said.