ImaCheesehead
Recycles dryer sheets
- Joined
- Mar 6, 2013
- Messages
- 115
I am struggling with this question.
DH retired 3 months ago and will go on Medicare. I will go on ACA for the next 5 years. At that point, his age 70, he will start SS. Since RMD’s start very shortly afterward we won’t have much time to do any conversations for him.
Since he is 5 years older than I, and in poorer health, we suspect I could be left dealing with the tax torpedo. That would point to doing Roth conversations now for his IRA but that would mean paying close to 10k in premiums and another 8k in taxes. Over 5 years that is a lot of cash out the door, we might have to sell mutual funds to cover it.
OTOH, we plan on going into a CCRC in 7-10 years and I heard that part of the payment to get in and maybe some of the monthly charges could be tax deductible so maybe we could reduce our IRA/401k balances that way?
His IRA/401 balances are currently about 1.6 mil, and mine is 600k. We have about 1.5 mil in brokerage/savings.
Would love to get anyones thoughts on this if you were in a similar position or even if you weren’t.
DH retired 3 months ago and will go on Medicare. I will go on ACA for the next 5 years. At that point, his age 70, he will start SS. Since RMD’s start very shortly afterward we won’t have much time to do any conversations for him.
Since he is 5 years older than I, and in poorer health, we suspect I could be left dealing with the tax torpedo. That would point to doing Roth conversations now for his IRA but that would mean paying close to 10k in premiums and another 8k in taxes. Over 5 years that is a lot of cash out the door, we might have to sell mutual funds to cover it.
OTOH, we plan on going into a CCRC in 7-10 years and I heard that part of the payment to get in and maybe some of the monthly charges could be tax deductible so maybe we could reduce our IRA/401k balances that way?
His IRA/401 balances are currently about 1.6 mil, and mine is 600k. We have about 1.5 mil in brokerage/savings.
Would love to get anyones thoughts on this if you were in a similar position or even if you weren’t.