IRA to Roth Transfer
Hello and thank you for any assistance,
Is there a formula to determine how much money a senior should transfer on a yearly bases from a traditional IRA to a Roth account?
My wife and I are both retired, my wife will be 72 in September and I will be 69 in August. My wife receives $1990 per month in SS and I receive $3180 per month. Our SS is our only source of income.
We have IRAs in each of our names and a Brokerage account in both our names.
The Roth account is solely in my wife’s name.
Thank you for any assistance,
Terry Says
There are a lot of things to consider in making a conversion from a traditional IRA to a Roth. Please read this article: https://www.terrysavage.com/roth-conversions-2/
But overall, I think your both should stick with your traditional IRAs, and start taking RMDs when each of you reaches age 73. Doing a conversion now could trigger higher income — enough to increase your Medicare premiums. So unless you want to get very creative, just stick with things the way they are. The most important thing at this stage is to make sure each of your IRAs are invested conservatively.
