401(k)s and IRAs: Grow your money, shrink your taxes

How to invest for retirement so that you get rich - and the IRS doesn't.

Protect It
When is converting to a Roth IRA the right move?
Investors can convert a traditional IRA to a Roth IRA at any time. And sometimes it can be a money-wise move. But there are a few things you should know. You'll owe income tax on the money you convert, but in return you can get at your savings tax-free in retirement.

Make the switch if...
• You want to hedge against the possibility that you'll face a higher tax rate in retirement.
• You can pay the conversion tax with money you have outside the traditional IRA.
• You want access to tax-free income after you retire, which gives you more flexibility to manage your tax bill.

You're eligible if....
• Your modified AGI is not above $100,000, although this requirement will be dropped in 2010, opening conversions to everyone.
Your 401(k) A top priority Go for an IRA MONEY's best savings strategy Take your 401(k) with you When is converting to a Roth IRA the right move? Withdraw money sparingly, if ever, and never pay a penalty First things first Tax-deferred accounts come next Ready for the Roth IRA
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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.