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IRA to Roth?

By Terry Savage on November 19, 2021 | Financial Planning / Retirement

I am 79 years old. My income from pensions and SS is about $100K annually. I have $94K in traditional IRAs. Should I move them to Roth and pay the tax now? I also have over $300K in savings accounts making little interest. I put it there because I plan on moving to a condo within the next couple of years., and figure I need the ready cash. My house is paid for but is worth only about $60K due to it’s location. Should I put the $300K in something else for now?

Terry Says

No, No, and NO!! Leave your money in the bank, despite the low interest rates. Do NOT take the money out and pay the taxes now, which is required if you switch to a Roth. Double check that the investments in your IRA are not too risky! And make sure you have an updated will and healthcare power of attorney.
A final bit of advice: If you’re planning to make this move, do it now. Home prices are high, because of current low mortgage rates. That’s likely to change. AND, on a non-financial basis, it’s always wise to make this move while you are young enough to enjoy and adapt to the change, and make new friends!



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