Alan Ross

Comments:

• I started ROTH conversions after I retired at age 60 and my salary dropped off. I do the conversions to fill the 24% federal tax bracket. Since I am fortunate to have accumulated a substantial 401k balance, (converted to IRA after retirement because the 401k plan didn't allow Roth conversions) I estimate to be in 32% or higher tax bracket once I start collecting Social Security payments at age 70 and RMDs at age 73. I pay the conversion tax from taxable account dividends. Even if I don't see the benefit of conversion in my lifetime, my daughter, who is a high earner, certainly will.

  Post: Paying to Avoid Pain

  Link to comment from May 12, 2024

• While the benefit of a conversion may not matter to a dead person, it may matter to alive beneficiaries, especially if they are high earners and thus in high tax brackets.

  Post: Paying to Avoid Pain

  Link to comment from May 12, 2024