IRA to Roth Conversions
At 70 years old is it wise to convert a large amount of IRA savings to a Roth account and write the rather large check for the taxes due? I currently live off a pension that may or may not remain solvent in the future. My initial thought is not to do it because I’d have a difficult time writting the government the check. Your thoughts.
Terry Says
Everyone has a difficult time writing that check to the government! And it must be done with money held outside the IRA.
Here are two arguments for doing so.
1. With the Roth you will never be required to take distributions, so you can easily pass the balance to your heirs.
2. There is a distinct possibility that rates will go much higher in the future. Then you can look back and pat yourself on the back for doing the conversion.
Two other notes. You don’t have to convert ALL of the money. Consider taking a half and half approach.
