High Net Worth client converting Qaul. money to Roth in 2010
I am unable to find a calculator that will allow me to see if a conversion for qual. money to a Roth makes sense in 2010 because they all still seem to have the income limitation for right now ($100,000). The client does have enough NQ money to pay the income tax that will be due but is there any reason why he shouldn’t? He grosses $550k annually and will potentially convert $1.8M. I just don’t know if that is the right strategy…any help?
Permalink Submitted by Bruce Steiner on Mon, 2008-08-11 23:48
Try Excel.
If he waits, will he accumulate money from his earnings faster than his IRA will grow, so that at some point he’ll have enough nonretirement money with which to pay the tax on the conversion?