I know, many discussions about this. I have a final question.
I read this in a Kiplinger Article:
https://www.kiplinger.com/article/i...e=SYN-yahoo&utm_medium=referral&rid=SYN-yahoo
"For example, let’s say that you file jointly and your taxable income is $50,000. That puts you in the 12% tax bracket. The income level at the top of the 12% bracket is $77,400. So you have $27,400 to go before you inch into the 22% bracket ($77,400-$50,000). This means you could convert $27,400 from your IRA to your Roth IRA without jumping into the next tax bracket. The amount you convert, $27,400, would be taxed at 12%.
If you retire at 60, and tax rates stay where they are, and you repeated this process each year until age 70½, you could convert $274,000. That money, now in the Roth, will grow tax-free. In addition, the balance of your IRA will be $274,000 lower at age 70½, so your required distributions will be less. In addition, the growth that would have occurred on the $274,000 in your IRA will now be in your Roth growing tax-free"
"You can convert any amount you want. There are no income restrictions."
I always thought you were limited to a $7K contribution to the Roth. Now, I understand, there is no limit to converting from tIRA to Roth, is that correct? Ignore the tax implications (I get that).
I read this in a Kiplinger Article:
https://www.kiplinger.com/article/i...e=SYN-yahoo&utm_medium=referral&rid=SYN-yahoo
"For example, let’s say that you file jointly and your taxable income is $50,000. That puts you in the 12% tax bracket. The income level at the top of the 12% bracket is $77,400. So you have $27,400 to go before you inch into the 22% bracket ($77,400-$50,000). This means you could convert $27,400 from your IRA to your Roth IRA without jumping into the next tax bracket. The amount you convert, $27,400, would be taxed at 12%.
If you retire at 60, and tax rates stay where they are, and you repeated this process each year until age 70½, you could convert $274,000. That money, now in the Roth, will grow tax-free. In addition, the balance of your IRA will be $274,000 lower at age 70½, so your required distributions will be less. In addition, the growth that would have occurred on the $274,000 in your IRA will now be in your Roth growing tax-free"
"You can convert any amount you want. There are no income restrictions."
I always thought you were limited to a $7K contribution to the Roth. Now, I understand, there is no limit to converting from tIRA to Roth, is that correct? Ignore the tax implications (I get that).
