Roth Conversions: When They Make Senseand When They Dont

Panchenko Vladimir/ShutterstockA Roth IRA offers several distinct benefits. Your money grows tax-free in a Roth IRA and qualified withdrawals are also tax-free. Moreover, you don’t need to take required minimum distributions (RMDs) from a Roth IRA.RMDs are minimum amounts of funds the IRS requires you to withdraw from tax-deferred accounts like traditional IRAs and 401(k)s every year once you reach age 73. So your money could effectively grow tax-free throughout your lifetime in a Roth IRA.