The Tax Cuts & Jobs Act (TCJA), passed into law in December 2017, significantly reduced income tax rates.
If an individual wants their existing tax deferred retirement accounts to become tax free going forward, they need to pay the taxes now on the value in their tax deferred retirement accounts.
The reduction in tax rates has reduced the tax bill to do this conversion.
For many people, trying to convert everything they have in a tax deferred retirement account in one shot is too large a tax burden even with the reduced tax rates of the TCJA.
We can help you determine whether it makes sense to convert your tax deferred accounts in one shot or via a series of smaller annual conversions along with where to find the funds for the taxes that are due as a result of the conversion.