pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
What about 401k assets that you left in your old 401k account?
Or would you have to transfer those to tIRA and then transfer again to Roth?
But these conversions only make sense if you have low taxable income right?
If you have relatively high income, then the 401k distributions just raise the taxable income. I understand the general strategy though, when you're forced to take RMDs at age 70, it's better to have as much retirement assets in Roth IRA, not tIRA or 401k.
I rolled my 401k into an tIRA and then converted money into a Roth IRA... I'm not totally sure if you can go directly from a 401k to a Roth but you might be able to.
Yes, Roth conversions manke the most sense during periods of your life where your income tax rate is low.... especially lower than it will be in retirement once pensions, SS and RMDs are online.... commonly between when you retire and before pensions and SS start unless you need to keep your income low for ACA subsidies or other reasons.
If you're income/tax bracket excluding Roth conversions is higher than it will be in retirement then Roth conversions don't make sense.