An IRA conversion to a Roth IRA is a popular pre-retirement or early-retirement move. Roth IRAs offer several benefits that traditional retirement plans don’t. Not only are investment gains in a Roth IRA tax-free, but withdrawals are tax-free, as well.
Just as important, Roth IRAs don’t require savers to take required minimum distributions (RMDs), as traditional IRAs and 401(k)s do. This allows Roth IRA holders to benefit from tax-free growth indefinitely and to use their retirement accounts to pass on wealth to younger generations.
