gregory r.
Dryer sheet aficionado
- Joined
- Jun 25, 2014
- Messages
- 41
Thinking of doing a Roth conversion w/part of a current pretax IRA however, I'm not sure it will be of benefit in the long run. Situation:
- looking to convert 100k to a roth
- current tax bracket of 33%
- cannot contribute thereafter due to AGI being over limit
- both DW & I are 54 and hope to FIRE at 59
Question - based on today's tax rate, verse where we might be after FIRE, i'm not sure it's worth it to convert. We should have a lower tax base after FIRE, not sure paying 33% now, even adding any projected gains over the next 5-10 years would be of benefit verse letting the 100k sit and eat my lower tax bill later. I guess if i let it sit for 10 or 15 years of gains it may be beneficial.
Am i missing something in my view of this? Any insights appreciated
- looking to convert 100k to a roth
- current tax bracket of 33%
- cannot contribute thereafter due to AGI being over limit
- both DW & I are 54 and hope to FIRE at 59
Question - based on today's tax rate, verse where we might be after FIRE, i'm not sure it's worth it to convert. We should have a lower tax base after FIRE, not sure paying 33% now, even adding any projected gains over the next 5-10 years would be of benefit verse letting the 100k sit and eat my lower tax bill later. I guess if i let it sit for 10 or 15 years of gains it may be beneficial.
Am i missing something in my view of this? Any insights appreciated