IRA Conversion
I am 84 years of age and have a traditional IRA, balance about $164K, which I am thinking of converting to a Roth. How does one go about estimating the tax to be paid pursuant to such a conversion?
Terry Says
Why would you want to do that? You need to have money outside the IRS to pay the taxes. And at your age, you need your cash for liquidity. My suggestion is to just keep taking RMDs. Tax rates may go up in coming years, but you can’t be in that high a tax bracket that it would offset the liquidity loss from money you would owe in taxes the year of the conversion.
