Rollover question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
jackoak
Posts: 2
Joined: Thu May 07, 2020 8:39 am

Rollover question

Post by jackoak » Thu May 07, 2020 8:59 am

My wife and i are mid seventies, retired 10+ yrs. Since we don't have to take rmd from our traditional ira this yr, would it make sense to do a rollover to roth with that money? We assume most of that money will go to our heirs.

lakpr
Posts: 5409
Joined: Fri Mar 18, 2011 9:59 am

Re: Rollover question

Post by lakpr » Thu May 07, 2020 9:18 am

Yes, absolutely. I would suggest that you fill out up to the top of 12% tax bracket through Roth conversions. I don't believe we will ever see a marginal tax rate less than 12% in our lifetimes again (and I am about 25 years younger than you) ..

kaneohe
Posts: 6503
Joined: Mon Sep 22, 2008 12:38 pm

Re: Rollover question

Post by kaneohe » Thu May 07, 2020 9:19 am

what is your marginal tax rate for the conversion vs your heirs marginal tax rate for ordinary income?

Topic Author
jackoak
Posts: 2
Joined: Thu May 07, 2020 8:39 am

Re: Rollover question

Post by jackoak » Thu May 07, 2020 9:37 am

Marginal tax rate for both at 22%

kaneohe
Posts: 6503
Joined: Mon Sep 22, 2008 12:38 pm

Re: Rollover question

Post by kaneohe » Thu May 07, 2020 10:06 am

so no large immediate impact but over time, Roth will be better and if/when tax rates go back up in 2025?/2026 then you be better off having converted now.

Post Reply