#### bfrank12

##### Dryer sheet wannabe

- Joined
- Apr 16, 2018

- Messages
- 21

1) Tax deferred account is not needed for income stream in retirement due to pension & social security income.

2) Tax deferred account will have greater benefit from Roth conversion due to legacy goal where inheritance will not be taxed on withdrawal

3) Not doing Roth conversion will cause IRMA surtax, possible capital gain 3.8% surtax. The difference per year from one IRMA bracket to another was calculated 7548 vs 12,561 per couple.

4) The timing of ROTH conversion will be 11 years from first required minimum distribution. it

5) Assume tax for conversion will be pay from taxable account.

I calculated the "desired RMD" balance in 11 years. Then I worked backward to determine from today's tax deferred balance how much is needed to convert each year to reach the "desired RMD" in 11years. This is generic from today's balance and hypothetical ROTH conversion each year & adding a 6% yearly return.

After doing this in the excel spreadsheet it resulted converting 175,000 per year in years at 12% bracket 35,000 tax for conversion for 5 years.

In the year at 22% bracket 50,000 conversion is 15,000 in tax. This seems like a lot of money for taxes when converting to what appears "logical."

Any input is greatly appreciated. Thank-you.