Roth IRA’s
Hello Terry, Long long time follower via your books, newsletters, WGN radio and TV broadcasts. Between you and our tax adviser we have done well with our ability to save for retirement.
Benzinga on Saturday September 27, 2025 put out an article by Suze Orman about Roth IRA’s. Not our favorite money person.
In Roth IRA’s money can grow tax-free and once certain conditions are met, both contributions and earnings can be withdrawn without additional taxes.
My wife and I are both over 59 1/2 and have had our Roth’s open for more than 5 years.
I have already begun my RMD’s and rolling those into a Fidelity and Vanguard brokerage accounts. However, I believe any withdrawals I might make, I would be taxed on the profits made, correct?
Would I be better rolling those RMD’s into my Roth and if so, how much can I contribute yearly? And do I have to wait 5 years after each deposit to get the tax free monies on the profit?
Being married and filing jointly for 2025 what is the combined income limit before the contributions phases out?
Terry Says
OK, there are a LOT of considerations here. When you do a ROTH conversion, you pay ordinary income taxes now — and the rest of the money grows tax-free for life, and there are no RMDs.
BUT, taking a tax hit now could have ramifications. It might move you into a higher tax bracket. If you’re already on Medicare, it could raise your Part B and D premiums.
And you need to look into the impact on your retirement income, and future taxes must be considered.
Please read this: https://www.terrysavage.com/roth-conversions-2/
And then to do the actual calculations required, go here: https://www.maxifi.com/ You can use their software — or using this site, you can find an advisor who specializes in Roth Conversions to guide you through the process.
I can tell by your questions that you don’t really understand the process, and I advise getting help for your specific situation. Not every advisor can walk you through this.
