Ed Slott’s Retirement Decisions Guide is a 47-page compact guide that is a perfect read for both consumers and financial advisors.

This week, The Slott Report will be providing a sneak peak at some of the material in the guide. The guide is broken up into “86 Ways to Save & Stretch your Wealth.” Over the next four days, we will showcase 4 of those ways.

CLICK HERE to purchase the guide (bulk options available). The guide is also available on Amazon Kindle eBook.

12. Does a Roth IRA conversion pay?

In many cases, the answer is a resounding yes. Income restrictions for converting to a Roth IRA have been waived starting in 2010. If you can pay the income tax due on the portfolio’s market value at the time of conversion, the move is a powerful one.

Here’s why: Historically, today’s income-tax rates are relatively low. A conversion allows you to pay income tax at the current rate and get rid of Uncle Sam for life. So, for example, if a $500,000 portfolio in a Roth IRA grows to $1 million in 15 years, all of those dollars are yours. And you get to enjoy all of the benefits of a Roth IRA, including no mandatory withdrawals.

The Slott Report: Ed Slott's Retirement Decisions Guide: #12