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Originally Posted by megacorp-firee
1) Doe it make sense to overtly keep taxable income down so that you can convert your IRA to a Roth at a reasonable marginal tax rate (20%?) so that you keep the RMD lower @ 70 1/2?
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Maybe. Depends on your individual circumstances. In my case I'm planning to convert about $100K from a TIRA to a Roth at the 15% marginal rate over a 3-4 year time frame.
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Originally Posted by megacorp-firee
2) Is this another reason to take SS later?
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Once again, maybe. You have to run the numbers for your own situation to see if the RMD hit at 70.5 could put you in the line of fire for what Scott Burns calls the 'tax torpedo'...assuming the tax and SS laws don't change between now and then. Could be paying 25% tax on the conversion now is less costly from a tax standpoint than getting torpedoed later. But then that's a key element of the hairball putting off all the sparks, smoke, and feuding on the "when to take SS" thread....
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Numbers is hard...
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