Roth conversions as early as your 20s and 30s? It’s not a crazy idea.

Roth conversions involve moving money from traditional retirement accounts to Roth accounts and paying taxes on the converted amount in the year of conversion. Financial advisors note that individuals in their 20s and 30s may face lower tax rates during years of reduced income, such as between jobs or during career transitions, creating opportunities to convert traditional retirement savings to Roth accounts at those lower rates. The converted funds then grow tax-free in the Roth account. Tax rates vary by individual circumstances and income level.

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