Which of the following conditions would generally not favor the rollover of an untaxed retirement fund (e.g.,traditional IRA or 401(k)plan)to a Roth account?
A)expected higher tax rates at retirement
B)significant after-tax funds available to pay taxes
C)an advanced age of the taxpayer
D)All of the above create favorable conditions for a rollover to a Roth.

Question

Quizplus · Accepted Answer

An advanced age of the taxpayer generally would not favor a rollover to a Roth account as there may not be enough time for the tax-free growth and the tax savings to offset the taxes paid on the conversion. Expected higher tax rates at retirement and significant after-tax funds available to pay taxes would favor a rollover to a Roth account as it may result in greater tax savings over the long term. Therefore, option D is incorrect.

Which of the Following Conditions Would Generally Not Favor the Rollover