Trump Tax Cuts And 11 Other Reasons To Skip A Roth Conversion

Prepaying income tax on a retirement account might be a good idea. Or it could be a really bad idea. Read this before pulling the trigger.

_{By William Baldwin, Senior Contributor}

Your financial advisor may be all fired up about prepaying tax on an IRA, converting it into a totally tax-free Roth IRA. Is this a great idea? Sometimes. Not always.

The recent election of a tax-cutter to the White House should have diminished the fervor of Roth fans. One of their arguments was that low tax rates passed in 2017 under then President Trump are scheduled to expire at the end of 2025, so you should jump on an opportunity to prepay. Now, there’s a good chance the low rates will be extended. There’s less reason to hurry.