4 years until I retire in 2023.
6 years until the tax brackets revert higher in 2026.
I'll have a sizeable IRA at retirement (401k plus Pension) with only 3 years to convert to a Roth at current rates.
I've an Inherited IRA.
Question is: do I begin withdrawing the Inherited IRA down before retirement, so I've all 3 years to convert my IRA?
Or do I let the Inherited IRA grow until 2025 before withdrawing, leaving only 2 years to convert the IRA?
I'd have thought the former more attractive, but compounding makes it (near) a wash.
I needn't decide before November (when we might have an idea if the tax cuts will be made permanent or expected to balloon), but is there anything I'm missing?
Thanks.
6 years until the tax brackets revert higher in 2026.
I'll have a sizeable IRA at retirement (401k plus Pension) with only 3 years to convert to a Roth at current rates.
I've an Inherited IRA.
Question is: do I begin withdrawing the Inherited IRA down before retirement, so I've all 3 years to convert my IRA?
Or do I let the Inherited IRA grow until 2025 before withdrawing, leaving only 2 years to convert the IRA?
I'd have thought the former more attractive, but compounding makes it (near) a wash.
I needn't decide before November (when we might have an idea if the tax cuts will be made permanent or expected to balloon), but is there anything I'm missing?
Thanks.