Should I convert some funds to a Roth ira

[dm]

I’ve been retired 10 years now, I’m 60, and in 2 or 3 years I’ll probably have to start withdrawing some money from my IRA. My wife has a small amount of her ira in a Roth account and I have none.

My wife’s pension is just over 80k and it’s has cost of living adjustments, and 100% survivor benefits. So no change in income in the following years. I’m not sure when I’ll start my SS, but probably 62 or 63.

Does it make any sense to take some money out of the regular IRA and put it into a Roth at this point?

 

[camfused]

Keep in mind that at age 70.5 you will have to starting taking RMDs from your IRA. If you also are still taking out money to convert to Roth, it will be on top of the RMDs. This will deplete your IRA quicker. So, if you do some conversions, you may want to stop at 70.5.

 

[pb4uski]

Yes, it'll likely cost you 15% of the conversion amount (12% under the new tax law) if you fill up your current tax bracket and that is probably a lot less than you will pay once you both start drawing SS.

You'll probably be able to do $15-20k a year depending on what your deductions and other income are.

 

[Sunset]

OP - If you have tax software, you could take a copy of last years return, and try adding in a $10,000 IRA withdrawal (it's taxed the same as a conversion to roth).

You would see how much taxes would go up, then try $15K, $16K, etc until you get a number you like.

 

[dm]

OP - If you have tax software, you could take a copy of last years return, and try adding in a $10,000 IRA withdrawal (it's taxed the same as a conversion to roth).

You would see how much taxes would go up, then try $15K, $16K, etc until you get a number you like.

Thanks, this is what I’ll do. I need to get started on this I suppose.