Why Let Your 401(k) Just Sit There?

Your 401(k) or traditional IRA might be growing quietly—but is it set up to give you the most tax-free income in retirement?

 

Now’s the Time to Take Control with a ROTH CONVERSION.

If you’re like many local retirees and pre-retirees, your nest egg is sitting in pre-tax accounts… which means Uncle Sam will eventually take a big cut. The good news? You can take control now with a smart strategy: Roth conversions.

A Roth conversion moves funds from your 401(k) or IRA into a Roth IRA. Yes, you’ll pay some tax up front—but after that, your money grows 100% tax-free. And unlike traditional accounts, Roth IRAs aren’t subject to Required Minimum Distributions (RMDs)—so you choose when and if you withdraw.

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Why Now?

• Tax rates are low—but could rise soon (potentially after 2025.)
• Markets may be down—which means paying tax on lower balances now could supercharge future gains.
• You can spread conversions over multiple years to control the tax hit.

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Who Should Be Thinking About This?

• You’re recently retired but not yet taking Social Security
• You’re in a lower tax bracket this year (or expect to be soon)
• You want to reduce future RMDs
• You want to leave tax-free wealth to heirs

Age matters: The ideal window for many people is between ages 60 and 73 (before RMDs begin). But younger investors expecting higher future tax rates can benefit too.

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Final Thoughts from Northpoint
By Justin Patellaro

Don’t just let your 401(k) sit there and hope for the best. The choices you make now could mean the difference between paying more tax later—or keeping more wealth for yourself and your family.

Roth conversions aren’t one-size-fits-all, but the opportunity window right now is too important to ignore.

 

Let’s figure out what’s right for you.
Schedule a complimentary strategy session today.