Question about the best time to convert an existing Traditional IRA (TIRA) to a Roth IRA. I have had a TIRA for 25 yrs, with a hypothetical balance of $50k of which $10k were previously taxed contributions. Currently, I am in the 37% tax rate bracket and expect the same for 2019-2021 tax years.
How do I analyze if I should begin converting the TIRA to Roth immediately or wait until the 2022 tax year when I expect to drop into the 24% tax bracket. Is there a tax calculator which would help with this analysis. I created a spreadsheet of the two scenarios, and unexpectedly it seems like slightly less taxes would be paid if I start converting immediately at the higher tax rate and continue later at the lower tax rate. However, the difference was negligible over the time it would take to convert the $50k balance.
Omalley
How do I analyze if I should begin converting the TIRA to Roth immediately or wait until the 2022 tax year when I expect to drop into the 24% tax bracket. Is there a tax calculator which would help with this analysis. I created a spreadsheet of the two scenarios, and unexpectedly it seems like slightly less taxes would be paid if I start converting immediately at the higher tax rate and continue later at the lower tax rate. However, the difference was negligible over the time it would take to convert the $50k balance.
Omalley