No family – How can I avoid taxes on my IRA
I have watched Ed’s PBS special which is very good for those with children or relatives. I am not married, and do not have any children or living relatives. How to I avoid paying the IRS taxes when it becomes time for me to start withdrawing my IRA. Note: I am currently 57 years old. Should I execute a roll-over to a ROTH and go ahead and pay the taxes now? Any help appreciated.
Permalink Submitted by Barney Miller on Sat, 2008-06-14 15:15
In order to avoid future RMD & taxation, Roth conversion does provide an alternative. The tricky part is converting as much as possible each year without getting pushed into a much higher tax bracket. Taking the time to estimate your next years income & expenses for IRS 1040 will allow you to plug in different conversion amounts to determine the best amount to convert.