How to Convert Your Traditional 401k to Roth Money

The Roth conversion ladder is a fancy technique to get the most out of your 401k or IRA. It lets you convert money that went into an account tax-free, grew tax-free and now converted it to tax-free withdrawal eligibility by using the standard deduction for free. You have to let Roth conversions settle for five years before you can touch them. The IRS doesn't recommend touching it early, but if you wanted to complete a Roth conversion, we have turned that standard deduction size in our 401k.

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