Considering a Traditional IRA to Roth IRA Conversion

​Darcy Bergen is an experienced financial advisor and president of the Bergen Financial Group in the Phoenix suburb of Peoria. Among his wide-ranging areas of expertise, Darcy Bergen is adept at helping clients convert traditional IRAs to Roth IRAs.

Both traditional and Roth IRAs are individual retirement accounts that allow people to invest for retirement and then draw upon those savings with various tax advantages. Only recommended under professional guidance, an IRA to Roth IRA conversion involves moving assets from an existing traditional IRA into a Roth IRA.

Well-known for their potential tax benefits, Roth IRAs do not require you to pay taxes on investment profits or any deducted contributions. Holders of Roth IRAs can make tax-free withdrawals as long as they meet the stated requirements.

For people in different life and financial situations, the benefits of an IRA to Roth IRA conversion may not outweigh its drawbacks. Because you will owe federal income taxes on the full amount of your conversion, you must be able to make that one-time payment. Furthermore, anyone who might need to begin withdrawing from a Roth IRA in the near future should think twice before doing so. This is because Roth IRAs impose a 10-percent penalty on all withdrawals within five years of conversion.

Darcy Bergen ; Requirements for Obtaining the CRFA Designation

Shop