Originally Posted by BUM
I went through the simulator today to see what it would cost to convert to a Roth. Holy crap almost a six figures at 25% tax rate. Seems too high.
The trick is to stay in the 15% bracket and do partial conversions over a number of years.
But if you're going to be in a 15% or 25% bracket when you take RMDs then a conversion may not worth it. And you may be able to reduce the size of the RMD at age 70 by starting withdrawals before then, although that pretty much defeats the purpose of the tax deferral.
I can predict that our tax brackets won't get any lower, so spouse & I are converting now.