Originally Posted by zinger1457
I think some of us (myself included) do ROTH conversions not because we expected the rates for the tax brackets to go up but because we expect our income to go up in future years bringing us into a higher tax bracket. I don't see that changing much with both of the proposals that are currently out.
+1....... 2017 will be the 5th year that we have done Roth conversions to the top of the 15% tax bracket because once SS starts we expect to be in the 25% tax bracket (under current and House proposed brackets.... 22.5% under the Senate proposal).
Please note... just because I'm converting to the top of the 15% tax bracket does not mean that we are paying 15% in tax on the conversions... over the 5 years our tax on the conversion has ranged from 2% to 11% and averaged about 8% because some is 0% because it is sheltered by deductions and exemptions and some is at 10%... with the remainder at 15%.
While we have been able to convert about $275k over the 5 years, because of good investment results our tax-deferred balances as a % of the total is about the same as when I retired.... but our Roth % has increased 20% with a corresponding 20% reduction in taxable as a percent of the total (from 44% to 24%).