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Reasons to Wait Until You Retire to Make a Roth Conversion
The Slott Report
Apr. 30, 2014
"[Y]ou can contribute to an IRA, 401(k) or other retirement plan while you are working in a high-income-tax-state, possibly getting a deduction (check your state rules) and allow that money to grow tax-deferred until you retire. Then, when it's time to take the money out -- or make a Roth IRA conversion -- you can be in a low or no tax state and minimize your tax liability. This can be such a big deal that [some people move] to a state just so they wouldn't have to pay income taxes on large Roth IRA conversions."
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