Strategic Roth conversions in the gap years of retirement can offer certain advantages and disadvantages. Here are some pros and cons to consider: Pros: Tax-free growth: Roth conversions can offer the potential for tax-free growth on investments. This can be especially beneficial in the gap years of retirement when income may be lower and tax rates may be more favorable. Reduced Required Minimum Distributions (RMDs): Converting traditional retirement account funds to a Roth IRA can reduce your future RMDs, which may help to lower your overall tax liability in the long run. Legacy Planning: Roth accounts can be passed down to beneficiaries tax-free, offering potential estate planning benefits. Cons: Tax Consequences: Roth conversions involve paying taxes on the amount being converted in the year that the conversion is made. Depending on the size of the conversion and your current tax bracket, this could result in a significant tax bill. Loss of tax deduction: By converting
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