Prague
Recycles dryer sheets
- Joined
- Apr 20, 2017
- Messages
- 53
Hi All,
Happy to report that we retired earlier this year and have taken some very big international trips and so far we are enjoying our ER very much. Since we are coming to year end almost, have a question for the group related to Roth Conversion from Traditional IRA account.
Here are some details related to this question:
- We are currently 55/50 of age and expect a tax torpedo in about 10-20 years when we are eligible for social security (not sure exactly when we will take them) and RMD start
- Since we worked in the beginning of the year before pulling the ER trigger, this year we have about 40K earned income (W2) and we will not have any earned income next year.
- Our passive income from investment dividend and interest is around 125K this year but will probably increase by 10-15K next year as we deploy some cash into equity/bond.
The key questions are -
A. Should we start converting from the Traditional IRA to Roth this year, which will be add to the 2019 tax year or should we wait till next year when we do not have any earned income?
B. Is there anything that we need to be aware of or think through before we start the conversion? For example, I assume that we should start with hubby's IRA as he is 5 years older and maybe only start mine at later retirement years.
Thank you in advance! Please let me know if there are other details needed to answer this question.
Happy to report that we retired earlier this year and have taken some very big international trips and so far we are enjoying our ER very much. Since we are coming to year end almost, have a question for the group related to Roth Conversion from Traditional IRA account.
Here are some details related to this question:
- We are currently 55/50 of age and expect a tax torpedo in about 10-20 years when we are eligible for social security (not sure exactly when we will take them) and RMD start
- Since we worked in the beginning of the year before pulling the ER trigger, this year we have about 40K earned income (W2) and we will not have any earned income next year.
- Our passive income from investment dividend and interest is around 125K this year but will probably increase by 10-15K next year as we deploy some cash into equity/bond.
The key questions are -
A. Should we start converting from the Traditional IRA to Roth this year, which will be add to the 2019 tax year or should we wait till next year when we do not have any earned income?
B. Is there anything that we need to be aware of or think through before we start the conversion? For example, I assume that we should start with hubby's IRA as he is 5 years older and maybe only start mine at later retirement years.
Thank you in advance! Please let me know if there are other details needed to answer this question.