Hi Folks,
I am looking for advice/thoughts on how to decide whether to start converting our traditional IRAs to Roth IRAs and if so how much each year. Here are the details:
RMDs: My wife is 4 years away from having to take RMDs (66.5 years old). I am 7 years away (63.5 years old).
Income: Our only income is dividends (about 90% qualified) and capital gains from non-retirement accounts.
SS: We will both start at age 70 so no SS yet.
So, I realize that conversions are taxed as regular income and some attention to marginal tax rates is important when deciding on whether to convert and how much. For the consideration of marginal tax rates, do dividends and capital gains count towards the income level that dictates the marginal tax rate? In other words, what is the thought process on trying to decide whether to convert and how much? Thanks for any insight.
I am looking for advice/thoughts on how to decide whether to start converting our traditional IRAs to Roth IRAs and if so how much each year. Here are the details:
RMDs: My wife is 4 years away from having to take RMDs (66.5 years old). I am 7 years away (63.5 years old).
Income: Our only income is dividends (about 90% qualified) and capital gains from non-retirement accounts.
SS: We will both start at age 70 so no SS yet.
So, I realize that conversions are taxed as regular income and some attention to marginal tax rates is important when deciding on whether to convert and how much. For the consideration of marginal tax rates, do dividends and capital gains count towards the income level that dictates the marginal tax rate? In other words, what is the thought process on trying to decide whether to convert and how much? Thanks for any insight.