A financial advisor recommended that I convert my existing IRAs to ROTH IRAs, so that I could avoid any future penalties. However, I would have to take the 28% penalty to do so now. I believe the main thing to consider is what tax bracket you will be in when you eventually withdraw money from your IRA. If you expect to be in a higher tax bracket, then it would make sense to pay at the lower rate now. If you will be in a lower bracket, then you should probably keep your IRAs as they are. And if you will be in the same tax bracket, I would think it doesn't matter too much one way or the other. Of course, all this is assuming that you will have money outside of the IRA to pay the taxes for converting now.
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