Are you someone who follows the IRA Guru Ed Slott religiously and agrees with his perception on how one should not trust politicians with their taxes? Well, then, we are sure you might want to read more about why Slott believes this and how savers can do whatever they can to avoid taxes in their golden years.

Scott has explained his insight in great detail on several instances. Not only this, but he also hosts and leads seminars on financial planning, where he gives exceptional advice on how people can retire securely and with great money on hand. Want to learn more about the IRA Guru's input into taxes, retirement, and Roth IRAs? This article has you covered.

What is the Retirement Savings Time Bomb?

According to Ed Slott, the tax liability that constantly builds up in a user's Individual Retirement Account or IRA is the actual time bomb. How so? Well, according to Scott, while most people don't put enough brains on this, your IRA already belongs to the government. This might make you think, how so?

Well, most retirement accounts are not tax-free. So, you may have a lot of money in your bank account, but not all money will be yours, and a large portion of it will go to tax.

How Can one Defuse this Tax Bomb in their IRA?

We are sure you must be thinking about how to defuse this tax bomb. According to Slott, in order to pay as little tax as possible, one should turn their taxable accounts into tax-free ones and move their money to accounts that never tax.

How Can You Do This?

Upon asking how one can typically transfer their money from a 'forever taxing' account to one that 'never taxes, ' Slott said that the best means would be through a Roth IRA.

However, the question stands that while many people have already built their savings on a traditional IRA or tax-advantaged accounts, would they benefit from taking the backdoor through Roth IRA?

The answer is yes! Anybody who doesn't want to worry about the ways the higher future tax rates would affect their standard of living in their retirement years can choose the Roth IRA. According to Ed, this conversion would give individuals certainty and would enable them to stay clear or far from the broken and uncertain promises the government systems have made to them.

Is the Roth IRA Conversion the Best Move for Everyone?

While we did mention above that the Roth IRA is perfect for almost everyone who doesn't want to worry about the future tax rates affecting their standards of living in their retirement years, Ed has focused explicitly on who shouldn't be making the Roth IRA conversions too. Interested to know how to decipher whether making a switch is a great move for you? We have a few points listed for you below which may help you with it:

• It is not advisable to take the Roth IRA if you can't afford the up-front tax bill.
• You'll fall into a lower tax bracket when retired.
• If you have a child who will be applying for college in the near future or is seeking financial aid.
• And if you'd like to release your retirement savings immediately.

Are Roth IRA Conversions a Great Way to Cover for Yourself?

When learning about the IRA Conversion, you must think about whether or not it is a great move to cover for yourself. According to Slott, the IRA conversions are basically tax insurance but the question stands how does this work?

Well, with this conversion no matter how much the tax rates get raised by the government, an individual's tax rate will still stay at zero, which is excellent.

So, Why Don't More People Do Roth IRA Conversions?

We are sure that at this point, you must be wondering if making the IRA conversion is beneficial for the retirement plans and financial stability of an individual; why aren't more people making this switch?

The downside, which some people feel is present about Roth IRAs, is that they have to pay the taxes upfront. However, according to Ed Slott, those taxes supposed to be paid anyway, even through a traditional IRA account. This is a complex situation to understand for many, and only tremendously detailed research on it can help make up your mind.

Should You be Making a Roth IRA Conversions?

Now that you have all the essential insight on the taxes, retirement, and Roth IRA approach that Ed Slott is trying to convince users to take their financial path towards, the question is, should you be making a Roth conversion, or is it beneficial for you?

So, if you are someone who agrees with Slott's stance and also wants to make an intelligent decision for your retirement days, then we suggest that you can make this switch as long as you don't fall into Ed Slott's list of users who should not be making the conversion. So, do your research well and decide for yourself.

Wrapping Up!

Are you someone who wants to learn about Ed Slott's stance on taxes, retirement, and Roth IRAs in great detail before you make a conversion for yourself? We hope this article was helpful to you. Let us know what decision you end up making or what your thought process on it is now.