Also use NewRetirement, did a partial conversion to the top of the 12% federal bracket (MFJ) last year, will continue to do so. Our Roth accounts would ideally go to heirs. I deeply regret not converting a parent's traditional IRA to Roth over a decade ago back when they were terminally ill. Their deductible medical expenses were high enough that there may well not have been any taxes owed, but had there been I would have paid them since I knew I'd be inheriting the account. Plus it has now grown to several times the balance back then & all RMDs are ordinary income instead of tax-free...$10,000+ this year based on the old lifetime stretch rules, which cuts into the space for Roth conversions.
Comments
Yep, since I'm the one taking the spousal benefit we'll (same age) both be starting benefits at FRA, age 67.
Post: My Time to Claim
Link to comment from March 26, 2022
Also use NewRetirement, did a partial conversion to the top of the 12% federal bracket (MFJ) last year, will continue to do so. Our Roth accounts would ideally go to heirs. I deeply regret not converting a parent's traditional IRA to Roth over a decade ago back when they were terminally ill. Their deductible medical expenses were high enough that there may well not have been any taxes owed, but had there been I would have paid them since I knew I'd be inheriting the account. Plus it has now grown to several times the balance back then & all RMDs are ordinary income instead of tax-free...$10,000+ this year based on the old lifetime stretch rules, which cuts into the space for Roth conversions.
Post: Wrong Bucket
Link to comment from February 19, 2022