tenant13
Full time employment: Posting here.
We spend a lot of time on this forum discussing the math and general wisdom of ROTH conversions. I'm as big a fan of lower taxes as we all are so I keep going back to the idea - which I definitely like as a concept - but every time I do, I come back convinced that in my case conversions would neither increase my financial well being nor happiness and would not improve my lifestyle. There is a chance that in some scenarios they would increase my bottom line - but that in itself has never been my priority.
1. I'm single and I have no heirs so estate planning is not part of my financial plan (I don't even have a will because I can't come up with any ideas)
2. Because I'm single I'm not that concerned with RMDs increases after one of the spouse's death
3. I don't see myself surviving beyond my early 80s (57 now) but even if I do, I have enough money to live twice as well as I'm used to up until 95 and beyond. In other words: I don't need more money that the conversions could produce.
4. I will very likely move out of US or at least change state residency to something warmer with no state taxes (FL?) And state taxes rarely come up when ROTH conversions are discussed. I suppose what I'm saying is that now is not a good time - maybe later when state taxes are not in play.
5. Speaking of timing - while the standard advice is to take advantage of the current lower tax rates we really have no idea what the future changes in the tax code may bring (except for the upcoming 2025 reverse/hike). It's possible that there will be some kind of indirect ROTH taxation introduced.
1. I'm single and I have no heirs so estate planning is not part of my financial plan (I don't even have a will because I can't come up with any ideas)
2. Because I'm single I'm not that concerned with RMDs increases after one of the spouse's death
3. I don't see myself surviving beyond my early 80s (57 now) but even if I do, I have enough money to live twice as well as I'm used to up until 95 and beyond. In other words: I don't need more money that the conversions could produce.
4. I will very likely move out of US or at least change state residency to something warmer with no state taxes (FL?) And state taxes rarely come up when ROTH conversions are discussed. I suppose what I'm saying is that now is not a good time - maybe later when state taxes are not in play.
5. Speaking of timing - while the standard advice is to take advantage of the current lower tax rates we really have no idea what the future changes in the tax code may bring (except for the upcoming 2025 reverse/hike). It's possible that there will be some kind of indirect ROTH taxation introduced.