traditional IRA TO ROTH CONVERSION
Hello i have large IRA and will need to take RMD THIS YEAR. I will be always in highest tax bracket what are guidlines to convert to ROTH? My spouse or children also will be highest tax bracket and will not need may be just RMD.
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-15 15:24
Tax rates are more likely to move higher over time rather than lower. Therefore, you might want to have the current tax proposal now on hold analyzed to see where your taxable income including RMDs will fall. While the next proposal may be different in some respects, an analysis of this one would indicate how much you would be affected, and the more you would be affected the more you would convert. You would need to determine how large the conversions should be in order to reduce your RMDs enough to avoid future surcharges for high incomes etc. It also helps that you are moving to FL to reduce state taxes. Finally, having several IRA beneficiaries may not reduce their taxes if they are already in the highest bracket, but it will reduce the amount each will inherit.