Why Do People Engage In Roth Conversions?

IF 1.8 3区经济学 Q2 BUSINESS, FINANCE

National Tax Journal Pub Date : 2023-07-27 DOI:10.1086/725142

Lucas W. Goodman, Heidi R. Schramm

引用次数: 0

Abstract

We study Roth conversions using administrative tax data on all individuals who made Roth conversions from 2003 to 2018. We find that Roth conversions increased by more than 800 percent in 2010 when income limits were eliminated. We find that individuals (1) tend to convert when their tax rate is lower, (2) often convert only a portion of their individual retirement account (IRA), (3) use conversions to increase total tax-advantaged savings, and (4) are more likely to convert at ages shortly before distributions must be taken from IRAs but not Roth IRAs. We also find that behavioral factors may play a role in conversion decisions.

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为什么人们会参与Roth转换？

我们使用2003年至2018年所有进行罗斯转换的个人的行政税收数据来研究罗斯转换。我们发现，2010年取消收入限制后，罗斯转换增加了800%以上。我们发现个人(1)倾向于在他们的税率较低时转换，(2)通常只转换他们的个人退休账户(IRA)的一部分，(3)使用转换来增加总税收优惠储蓄，(4)更有可能在必须从个人退休账户(IRA)而不是罗斯个人退休账户(Roth IRA)中提取分配前不久转换。我们还发现，行为因素可能在转换决策中发挥作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

National Tax Journal Multiple-

CiteScore

3.40

自引率

11.80%

发文量

期刊介绍： The goal of the National Tax Journal (NTJ) is to encourage and disseminate high quality original research on governmental tax and expenditure policies. Articles published in the regular March, June and September issues of the journal, as well as articles accepted for publication in special issues of the journal, are subject to professional peer review and include economic, theoretical, and empirical analyses of tax and expenditure issues with an emphasis on policy implications. The NTJ has been published quarterly since 1948 under the auspices of the National Tax Association (NTA). Most issues include an NTJ Forum, which consists of invited papers by leading scholars that examine in depth a single current tax or expenditure policy issue. The December issue is devoted to publishing papers presented at the NTA’s annual Spring Symposium; the articles in the December issue generally are not subject to peer review.