Roth conversion
Should I onvert all my IRA to a Roth & pay taxes & Medicare IRMA? Will put me in 24% tax bracket vs current 22%. I am 69 & waitingto collect SS next year.
Should taxes come out of savings or from the IRA?
Thank you!!
Terry Says
When you do a conversion all the taxes should be paid with money outside the IRA. But the real reason to convert now is because you assume that tax rates will be higher in the future and you don’t want to take (and don’t need to take) RMDs.
From your question it seems you won’t be in a very high tax bracket — and you probably will need to take withdrawals to live on. If that’s the case, don’t bother doing a conversion and paying the taxes now.
