Originally Posted by jimhcom
There needs to be a mechanism for transfering funds from a regular IRA to a Roth IRA with a low one time tax and no penalty. (ie. $7500 per yr. @ 10%) This would allow future retirees to build their tax free accounts which would raise their actual retirement income. It would also increase present tax reciepts.
Why not just increase the Roth IRA max to, say, $25K pp per year?* Then you could throw all or most of your savings into a Roth, and when you retire, take out only enough from your taxable accounts to stay in the 10% bracket.*
I would not want to pay 10% up front because my game plan is to pay 10% or less later.