My wife and I are retired but have so far avoided Roth conversions from our over-funded traditional IRA. We're in NYS, and conversions would mean 24% fed tax plus approximately 7% NYS tax. At a total conversion tax of 31%, I don't think it's wise to convert from Traditional to Roth. We considered a move to a no-income tax/estate tax state, but haven't done so yet due to other personal reasons. All the articles I've read on Roth conversions seem to assume the account holder is in a no-income-tax state. Am I missing something regarding the Roth conversion math?
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My wife and I are retired but have so far avoided Roth conversions from our over-funded traditional IRA. We're in NYS, and conversions would mean 24% fed tax plus approximately 7% NYS tax. At a total conversion tax of 31%, I don't think it's wise to convert from Traditional to Roth. We considered a move to a no-income tax/estate tax state, but haven't done so yet due to other personal reasons. All the articles I've read on Roth conversions seem to assume the account holder is in a no-income-tax state. Am I missing something regarding the Roth conversion math?
Post: Eyeing the Future
Link to comment from May 27, 2023