Conversion to Roth.
Hello Terry. My Mom who is 94 and I have enjoyed listening to you over the years on WGN radio and television. Thank you for all you do. I am 66. I have a Vanguard IRA account that is all Roth worth about $370k with multiple stocks. I also have a Fidelity account from my former employer 401k account with some of it being a Roth 401k. I recently converted the funds to stocks so now they call it a IRA account and a Roth IRA account. I have about 90k in the Roth IRA and about 122k in the regular IRA. I plan on waiting till I’m 70 to collect the most from Social security. I would like to convert the rest of my regular IRA to Roth and I’m not sure if I should convert it all at once or spread out the conversion over the years till I’m 70. Also I’ve been contributing a monthly amount to my Vanguard Roth account for years for what the maximum the IRS allows yearly ($8600 in 2026). Just before I accepted a retirement package at the end of 2023 I paid off my mortgage, my car loan and new windows in my house. I have no outstanding debt, just monthly utility bills and credit cards that I pay off in full. Thank you for your help and guidance on this matter
Terry Says
Wow you’re in a good place! YOu need to factor in Medicare now that you’re retired and I assume using Medicare for your health insurance. Conversion could increase income — AND premiums for Medicare Part B and D.
The only place I know that you can get specific, personalized advice about the plusses and minuses of a conversion at this stage is here:
https://www.terrysavage.com/roth-conversions-2/
Please go through the process with them as there is a lot more to this decision than is immediately apparent!
