Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Some states exempt some or all withdrawals from retirement accounts from state income taxes. If you live in one of those states converting from Traditional to Roth and then withdrawing from the Roth avoids state taxes.

The way I read the article, whether you withdraw to spend or withdraw to convert, you're still avoiding state taxes. So, I'm not sure what taxes you're avoiding by converting and then withdrawing in the same year, rather than just withdrawing to spend.

AJ
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.