Few boomers are jumping at the chance to convert their traditional IRAs into Roth IRAs. TheStreet.com reports on a survey by USAA which found that 58 percent of boomers with an IRA are aware of the changes, yet 70 percent don’t have any intention of converting. Seventeen percent aren’t sure whether they will.
It seems tax fears are behind boomers reluctance. Forty-four percent said they didn’t think they’d be in a higher tax bracket after they retire, and they don’t want to pay higher taxes now. Over one-third of boomers were advised not to make the conversion by their tax planner or financial advisor, and 27 percent said they couldn’t pay the taxes that would be due on the converted funds.
Ken Kilday, a wealth manager with USAA’s Wealth Management practice, is optimistic about financial advisors’ opportunities.