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-   -   Roth IRA conversions and tax rates (http://www.early-retirement.org/forums/f28/roth-ira-conversions-and-tax-rates-49175.html)

Nords 03-12-2010 11:34 AM

Roth IRA conversions and tax rates
 
https://news.fidelity.com/news/artic...es&topic=taxes

No quantitative predictive value. Fidelity's "answers" aren't exactly rocket science... they think that tax rates can go up farther than they'll go down.

But the interesting parts of the article are:
1.) Historical deficits, especially the Great Depression and WWII,
2.) Historical tax rates, especially the ones to contend with historical deficits,
and
3.) If your conventional IRA has been hammered down, then the taxable portion of the conversion is probably a lot smaller than it used to be.

Gotadimple 03-12-2010 02:37 PM

Funny, there was no discussion of reducing RMD's as another reason for converting to a Roth.

-- Rita

Nords 03-13-2010 10:46 PM

Quote:

Originally Posted by Gotadimple (Post 913692)
Funny, there was no discussion of reducing RMD's as another reason for converting to a Roth.

I think the article envisioned much smaller RMDs than most have hoped to expect..

Koolau 03-14-2010 03:45 AM

Quote:

Originally Posted by Nords (Post 914142)
I think the article envisioned much smaller RMDs than most have hoped to expect..

Yeah, I keep telling myself that large RMDs are a good problem to have. I guess we'll find out in a few years. If tax rates do go significantly higher, many of us may regret playing the gummint's silly game. I hope not.

Running_Man 03-14-2010 11:34 AM

What if the government actually cuts income tax rates and institutes a value added tax? This seems the most likely and simple way to address a trillion dollar annual deficit in the long term for the federal government.


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