Fidelity Investments is offering new resources to help investors and advisers decide if converting a regular IRA to a Roth IRA makes financial sense, adding a conversion evaluator calculator to its website that takes 20 minutes or less to use: fidelity.com/rothevaluator. Fidelity also has tax professionals available by phone and at its 132 investor branches across the nation, and has just published a “Viewpoint” article on the importance of tax diversification on its website: fidelity.com/taxdiversification.
Fidelity found in a recent study that 47% of those earning $100,000 or more a year are actively looking for ways to minimize taxes. While people cannot be sure of what their tax rate will be in retirement, Fidelity advises that people turn to tax diversification to minimize taxes on distributions during retirement, and says that either a full or partial Roth IRA conversion can help them conserve more money in retirement.
“Fidelity believes that the opportunity to convert to a Roth IRA is an important consideration for all investors, particularly those who will become eligible for a conversion in 2010,” said Chris McDermott, senior vice president of investor education, retirement and financial planning at Fidelity. “Every investor should weigh a variety of tax strategies when saving for retirement.”