Roth Conversions

A good tax strategy for 2020 for some taxpayers who are expecting much less income or even losses would be to convert a portion of their retirement plan to a Roth. This would generate taxable income in the year of conversion but might not create a tax liability if you plan it right. This would set up a source of tax free retirement funds for the future which would not be taxable as long as you didn't pull any money out within 5 years. This also is a good strategy to maximize your 20% qualified business income deduction if your taxable income is lower than your qualified business income.