Badger
Thinks s/he gets paid by the post
- Joined
- Nov 2, 2008
- Messages
- 3,411
Being a bear of little brain I thought I would post this just in case I overlooked something important regarding tIRA to Roth IRA conversion.
At 70.5 when we will both be required to take RMD we will go over the maximum for the 15% tax bracket by as much as $50k. We only have 3 years before wife takes RMD and then I am required the following year.
If I have the cash to pay the taxes now for converting some to a Roth then would it make good financial sense to convert some from tIRA to Roth IRA (in the same funds) now to reduce the RMD later?
It would only reduce the total RMD by less than $5k so we would still be in the higher tax bracket by 70.5.
Are there any good reasons not to convert and just wait to pay the taxes later?
Thanks - Cheers!
At 70.5 when we will both be required to take RMD we will go over the maximum for the 15% tax bracket by as much as $50k. We only have 3 years before wife takes RMD and then I am required the following year.
If I have the cash to pay the taxes now for converting some to a Roth then would it make good financial sense to convert some from tIRA to Roth IRA (in the same funds) now to reduce the RMD later?
It would only reduce the total RMD by less than $5k so we would still be in the higher tax bracket by 70.5.
Are there any good reasons not to convert and just wait to pay the taxes later?
Thanks - Cheers!