Early Retirement & Financial Independence Community - View Single Post - IRA to Roth Conversion

mathjak107 · 05-17-2007, 04:01 AM

i have to do much more number crunching on the roth conversions as im still unsure if its worth doing any conversion. aside from giving away close to 1/3 of the dough thats generating more money im not convinced taxes will be higher at any point for me when there is no pay check vs now with 2 pay checks coming in.

a retiree can pull almost 35,000 a year out of regular retirement plans at about a 1500.00 tax bill. that combined with tax brackets rising about 3% a year and no more than a few years away from 100k being in the 15% bracket im not sure a conversion isnt pissing good money away unless your already in the tax bracket that you will be retiring in..

like i said im not saying the conversion cant help some with rmd or from getting ss taxed but in my case im not so sure .

05-17-2007, 04:01 AM	#3
mathjak107 Thinks s/he gets paid by the post Join Date: Jul 2005 Posts: 2,792	i have to do much more number crunching on the roth conversions as im still unsure if its worth doing any conversion. aside from giving away close to 1/3 of the dough thats generating more money im not convinced taxes will be higher at any point for me when there is no pay check vs now with 2 pay checks coming in. a retiree can pull almost 35,000 a year out of regular retirement plans at about a 1500.00 tax bill. that combined with tax brackets rising about 3% a year and no more than a few years away from 100k being in the 15% bracket im not sure a conversion isnt pissing good money away unless your already in the tax bracket that you will be retiring in.. like i said im not saying the conversion cant help some with rmd or from getting ss taxed but in my case im not so sure .