trapperjohn
Recycles dryer sheets
- Joined
- Jun 1, 2012
- Messages
- 87
In principle, I understand that you should use other funds to pay taxes from a tIRA conversion to a Roth so that it maximizes the amount in the Roth. But if you have no other funds, and will face very large RMDs in the future, doesn't it make sense to pay the tax out of the conversion proceeds so that you can still move as much as possible into your Roth ASAP?
Possibly helpful background info:
I have about $950K in pretax tIRA, and about $100K in Roth I've had > 5 years. No other savings.
I'm 61, retired, with non-cola'd pension that already puts me in 25% bracket. I'm currently converting to top of the 25% bracket.
Not currently taking SS. When I *do* start SS, it will be approx $24k/yr.
Currently taking an additional $16K/yr out of tIRA for living expenses.
Paying taxes from tIRA withdrawals out of proceeds from those tIRA withdrawals.
Healthcare and LTC expenses are already accounted for in yearly expenses.
Possibly helpful background info:
I have about $950K in pretax tIRA, and about $100K in Roth I've had > 5 years. No other savings.
I'm 61, retired, with non-cola'd pension that already puts me in 25% bracket. I'm currently converting to top of the 25% bracket.
Not currently taking SS. When I *do* start SS, it will be approx $24k/yr.
Currently taking an additional $16K/yr out of tIRA for living expenses.
Paying taxes from tIRA withdrawals out of proceeds from those tIRA withdrawals.
Healthcare and LTC expenses are already accounted for in yearly expenses.