IRA to ROTH IRA Conversion?

[MichaelB]

It seems to me what makes sense is to try and estimate how much taxable income one will have - distributions plus SS - and try to even out that income stream over time. Because the tax structure is progressive, the lowest total tax over time will be paid when the income is always taxed at the same rate. One extra dollar of income is taxed at a higher rate than one deferred dollar, so "tax volatility" leads to higher total taxes paid.

Ideally, assume 30 years span, SS begins in 10 years, calculate the real PV of both those income streams, then calculate the tIRA withdrawal flow so that each year is the same inflation adjusted amount over the entire 30 year period. If that leads to a withdrawal of unneeded tIRA, then convert the difference. Any shortfall between budget and withdrawal is made up from the taxable funds. The Roth are the last to go because they are entirely tax free.

 

[73ss454]

If you need something to worry about you could always hire a distant relative to remodel your kitchen...

Who would be dumb enough to do something like that.

 

[Alan]

If you need something to worry about you could always hire a distant relative to remodel your kitchen...

Who would be dumb enough to do something like that.

My Dad, and then we had to listen to a litany of complaints for the next 10 years...

 

[73ss454]

Your Dad is not alone Alan, just a quick story. REW was breaking my shoes because it happened to me last year.

Get this, we move to Florida and DW decides we need a new kitchen. We call in a few guys for estimates and after talking to one of them it turns out that his DW's Mom is my DW's God Mother who was my DW's Dad's sister, very strange indeed.

Any way we contract with him. He tells us that he will come in on a Monday and rip out the old kitchen and install the new kitchen on Tuesday then the granite will be in by that Friday. So the Monday comes and they tear out the Kitchen. Ten weeks later.........Grrrrrr!