Roth IRA
Recently retired at 61 with a pension. I have a regular IRA which is actively managed with a fee of .9 %. Since my income is at its lowest point right now I would like to start a slow conversion to the Roth . How do I find the correct Roth for me? How do I assess risk while keeping fees low.
Terry Says
Well, first you MOVE your traditional IRA to a place that does not charge a nearly 1% annual fee!! Just call Fidelity or Vanguard and they will help you do a rollover! Then you will have to choose a few funds. You can leave it all in the money market fund to start. Tell them you plan to do a Roth Conversion. YOu know you should have money OUTSIDE the IRA to pay the taxes. Depending on your tax bracket — with this IRA money being included in your income for the year — they will tell you how much to set aside for taxes. If it’s a big hunk, you can convert half, or a quarter each year. In the meantime, you’ll make some investment choices in both the new Roth and the traditional IRA. Be conservative!
