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T-IRA / ROTH IRA policy
Old 03-18-2010, 07:50 AM   #1
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T-IRA / ROTH IRA policy

Please give me your thoughts on the following. Thank you.

I would like to create a "policy" for sheltering money in tax-deferred accounts.
- We are semi-ER'd.
- The chances are very slim (barring any changes in tax-rates) that we will be in the 25% bracket after full ER.
- We should be able to fund our ER till 59 1/2 from taxable accounts. If we absolutely need to, we can withdraw our contributions to the ROTH or use a 72T.
- We do not have access to a 401K.

Here's my thinking on sheltering money in tax-deferred accounts.
  • 25% Fed income-tax bracket,
Shelter the max in a T-IRA / SEP-IRA
No T-IRA to ROTH IRA conversion.
  • 15% or lower Fed Income-tax bracket
No SEP-IRA/T-IRA contributions
T-IRA to ROTH conversion to max out bracket.
  • Irrespective of bracket
Shelter the max in a ROTH IRA
Seems straightforward, but I wanted to use the collective wisdom of this board to make sure I'm not missing anything.

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Old 03-18-2010, 10:15 AM   #2
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I have converted and plan to continue converting up to the top of the 25% bracket. I have only been doing this for two years, so at the least I will get one more year under the current tax rules.

We'll see if this was clever or not.

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