How many ER readers are taking more than the RMD?

[Andre1969]

I'm sure this question has been answered before, so my apologies in advance. But, when it comes to doing a Roth IRA conversion, do I have to wait until age 59.5 to do it without the 10% penalty, or can I do it before?

My original plan was to just start drawing down my IRAs at 59.5, and then investing the money in something after-tax. But, if I could do a Roth conversion before 59.5, and avoid the 10% penalty, I might be tempted to start doing that.

 

[SoReadyToRetire]

What does that mean, that this forum "is the Lake Woebegone of the Internet"?

 

[Cobra9777]

I didn't vote.

We are 58/59 and currently collecting two pensions... one non-COLA, one partial COLA. So depending on inflation between now and 70, SS + pensions + taxable dividends should easily cover all of our expenses. RMDs will be reinvested in the taxable account. Then, when we have large non-recurring expenses, we can choose between taxable, Roth, and HSA, depending on the current tax situation. I can't envision ever withdrawing more than the RMD amount from tax-deferred. And hopefully RMDs will be small as a result of many years of Roth conversions.

Currently, we only convert to the top of the 12% bracket, so I don't expect to eliminate RMDs altogether. But that might change as I'm warming up to conversions in the 22% bracket. Not there yet.

 

[The Cosmic Avenger]

What does that mean, that this forum "is the Lake Woebegone of the Internet"?

Oops, I spelled it wrong, it's Lake Wobegon, "where all the women are strong, all the men are good-looking, and all the children are above average."