5 reasons to consider a Roth IRA conversion in your 50s.
Reason 4: YOU FEAR THE WEALTHY WILL LOSE SOCIAL SECURITY
Dozens of solutions to save the Social Security program have been proposed over the years. Means testing has been suggested by both political parties as one way to manage the program’s shortfall. Medicare is already means-tested, with higher earners paying more. If you believe this is a solution likely to be adopted, you might want to convert to a Roth IRA because unlike Traditional IRA income, Roth IRA income doesn’t count for Medicare surcharges and probably wouldn’t count for any possible Social Security surcharge.
Of course, no one knows for sure how politicians will try to “fix” Social Security, and whether it will affect higher earners more than anyone else. So pull out your crystal ball, because the word on the street is that it could happen.
Check back on Tuesday, January 3rd for the fifth and final reason to the five part series.