Convert IRA to Roth
I just turned 59, should I convert my hefty 600k IRA which are in a New York life into Roth, and of course will be gradually converted over the years. Thank you.
I just turned 59, should I convert my hefty 600k IRA which are in a New York life into Roth, and of course will be gradually converted over the years. Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2019-05-23 15:29
If your marginal tax rate on the annual amount you convert is less than, or in some cases roughly equal to the rate you would expect to pay on the future TIRA distributions if you don’t convert, then you should convert. Otherwise, conversion will probably not be beneficial. In most cases since your marginal rate may rise with higher conversions, you would be limited to incremental converted amounts each year. Best time to convert is prior to SS and RMDs will be included in your taxable income.
Permalink Submitted by Jeffrey Ito on Thu, 2019-05-23 20:55
I would just open a new Roth IRA account. This way you can avoid rollover fees.