IRA conversions to Roth

Submitted by Mario Paparozzi on Tue, 2015-05-05 12:32

I am 65 and I want to start converting money from my 457b plan into Roth IRAs. I believe that my tax bracket now will be lower than it will be in the future when I am faced with RMDs on top of pensions and social security. Is there a limit to the amount of money that I can convert to a Roth IRA?

Thank you.



Submitted by Alan - IRA critic on Tue, 2015-05-05 16:33

There is no limit, but converting too much in a single year could increase your marginal tax rate. A conversion is not beneficial if you will pay more on the conversion than you would on the RMDs if you did not convert. Of course, you can always do a full or partial recharacterization after you see your tax bill for the year.

Submitted by Mario Paparozzi on Thu, 2015-05-07 01:00

Thank you very much for this helpful advice.

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