Quote:
Originally Posted by jimhcom
There needs to be a mechanism for transfering funds from a regular IRA to a Roth IRA with a low one time tax and no penalty. (ie. $7500 per yr. @ 10%) This would allow future retirees to build their tax free accounts which would raise their actual retirement income. It would also increase present tax reciepts.
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Why not just increase the Roth IRA max to, say, $25K pp per year?* Then you could throw all or most of your savings into a Roth, and when you retire, take out only enough from your taxable accounts to stay in the 10% bracket.*
I would not want to pay 10% up front because my game plan is to pay 10% or less later.