Roth conversion
I am turning 73 this September but am still working. Each year I convert some money in my 401k into my Roth IRA. Thist year I will be required to take a required minimum. I plan to convert about 17,000 and also withdraw about 4200.00.I will be using the required minimum to pay for taxes on the withdrawal? Please verify that this is permitted.
Thanks.
Terry Says
Are you sure this continues to be a smart strategy? Ask your tax consultant. Your RMD is going to put you in a much higher tax bracket — and might even impact your Medicare Part B premiums, causing them to go up.
Also, at this stage of life, it’s wiser to roll the remaining 40l(k) balance into an IRA rollover account, where you are likely to have a better choice of more conservative investments. Read this: Rollover Now – Terry Savage
