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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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.