GoodWishes
Recycles dryer sheets
- Joined
- Jul 3, 2013
- Messages
- 162
Looked into Roth conversion a couple years ago. Based on our situation, it didn't seem to worth the trouble. Might look into it again some day.
Other than showing that conversions aren't for everyone, which I don't think is in dispute, this really doesn't help anyone. A short description of your situation and why there apparently is little or no gain would be helpful. Are you still working? Already taking SS and RMDs? Is your income bracket as high as you expect it to be when RMDs start? And what is the "trouble" you see with doing conversions?Looked into Roth conversion a couple years ago. Based on our situation, it didn't seem to worth the trouble. Might look into it again some day.
Doing nothing is often the best course, when it comes to money and investing. Since I don’t anticipate being in a higher bracket later in life, I see no advantage to Roth conversions now. YMMV.
Ideally I like to be balanced between IRA, Roth, and taxable accounts.
This would be especially useful if you have years with large expenses (buying a new house, new car, etc), then you can lower your taxes on the peak years by taking more from Roth/taxable instead of IRA.
+1. It is nice to be able to choose how much to pay in taxes. Right now we are 52% Roth and 48% traditional. But we’ll be roughly 40:60 by retirement age if I keep maxing out the 401(k).
There are a couple of IRA>ROTH conversion calcs online that will determine if it is worth it or not. Found that it was a toss up for me, and didn't want to hassle with it after that.
Don't know which gooddog used, but the two spreadsheets mentioned in Roth IRA conversion - Bogleheads can each be useful. The first for a multi-year look with decent tax estimation, and the second for a single year look with very accurate federal (and reasonably accurate state) tax estimation.Care to provide a couple links to the online calculators that you used?
Ideally I like to be balanced between IRA, Roth, and taxable accounts.
This would be especially useful if you have years with large expenses (buying a new house, new car, etc), then you can lower your taxes on the peak years by taking more from Roth/taxable instead of IRA.
Looked into Roth conversion a couple years ago. Based on our situation, it didn't seem to worth the trouble. Might look into it again some day.
Other than showing that conversions aren't for everyone, which I don't think is in dispute, this really doesn't help anyone. A short description of your situation and why there apparently is little or no gain would be helpful. Are you still working? Already taking SS and RMDs? Is your income bracket as high as you expect it to be when RMDs start? And what is the "trouble" you see with doing conversions?
I see no need for balance...I already plan to convert my modest traditional IRAs into my Roth IRA account well before I'm eligible to take SS.
And I'd happily move my entire taxable account into my Roth account were there a reasonably priced mechanism to do so.
I see no need for balance...I already plan to convert my modest traditional IRAs into my Roth IRA account well before I'm eligible to take SS.
And I'd happily move my entire taxable account into my Roth account were there a reasonably priced mechanism to do so.
I see no need for balance...I already plan to convert my modest traditional IRAs into my Roth IRA account well before I'm eligible to take SS.