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