Retired. 65. To Convert more to Roth or Not.
HI Terry,
I hear two schools of thought when it comes to converting. Leave everything as is and the other, convert more $ to Roth.
How do you make the best decision. I know it’s based on the individual so I’m looking for trusted advice.
We have 1/3 non retirement. 2/3 Retirement. $2M/$4M and $300k in Roth/HSA. I’ve a hobby job that brings in $25k-$35k. We’re not taking retirement…yet. I turn 65 in April (thank you for medicare articles!) Wife turns /25.
Concerns. At age 75, RMDs. When one spouse dies, takes are at single rates. When income gets high enough, IIRMA, higher SS tax etc. Sons eventually inherit 401ks that they are forced to take within 10 years. Belief system: we’re paying the lowest tax rates we’ll ever see. Also, rates will eventually have to go up. Listening to Economist Jessica Riedl entitlement programs are the big spend. something will have to change.
So, do you convert as much as you can up through the 22% bracket and perhaps some into 24% (i believe 24% will go away and it will eventually be higher)
Thank you for all you do!
Tom
Terry Says
I’ve covered that extensively in this recent column:
https://www.terrysavage.com/roth-conversions-2/
You’ll also find a source of advice on your personal situation in this column.