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Later retirer question for my dad
Old 02-20-2011, 08:28 PM   #1
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Later retirer question for my dad

As I think aout retiring early I have learned a lot -but not enough..My fathr just retired-finally!- at 81 years of age and is taking required minimum IRA that he is retired I assume he will be in a lower tax bracket and should seriously consider using these minimums to convert from the IRA to a ROTH I right? Will this be to his advantage? He has been investing them, but I am not clear in what and won't pry into his affairs - though I would like to advise him...he has not really gotten much guidance from his current advisers.

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Old 02-20-2011, 08:33 PM   #2
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The IRS won't allow RMD funds to be converted to a Roth IRA.

This will provide more info: RMD and Roth Conversion

Numbers is hard

Although rare, it is possible to read something on this forum you don't agree with and simply move on with your life

Retired in 2005 at age 58, no pension
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Old 02-20-2011, 09:02 PM   #3
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However, dad could still do Roth conversions to reduce future RMDs. He can use this year's RMD to help pay the taxes on a conversion rather than banking the RMD.

The idea is that if conversions now results in a lower tax rate on the converted money than it would be taxed in the future, then it's a good deal. Remember that "the future" could even be when you inherit his IRA and then the money would get taxed at your marginal income tax rate.
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