Convertion of tradional IRA to Roth IRA
HI Terry,
How does a person calculate the most tax efficient schedule of how much to convert per year from a traditional IRA to a Roth IRA? Is there a formula?
Terry Says
Read this: https://www.terrysavage.com/roth-conversions-2/
You have correctly intuited that this is a complex process. And this is the only way I know all those considerations — from the tax impact, the Medicare Premium impact, the future tax-free growth aspect, the losing liquidity by paying taxes now aspect — all of that plays a role in this decision. No guesswork!
