Success in ROTH conversions for high income brackets
Does anyone know what percentage of income earners over $250,000 are actually converting to ROTH’s?
Does anyone know what percentage of income earners over $250,000 are actually converting to ROTH’s?
Permalink Submitted by mk foss on Sat, 2011-12-17 00:14
I don’t know the answer to this question. Periodically news articles will quote Fidelity or Vanguard regarding the number of conversions in a year and conversions by age of the Roth owners. I haven’t seen one that addresses income levels of the “converters” though. Among my clients only 2 who converted in 2010 had income greater than $250,000; one converted everything in excess of the RMD, the other converted a dollar amount that was less than 1/3 of the IRA balance.
IRS publishes “statistics of income” on a quarterly basis where they will study various aspects of income information reported on tax returns. They’re usually about 3 years behind – so if they were to publish this information it would take awhile. Look for Statistics of Income at [url]http://www.irs.gov[/url%5DThe Investment Company Institute publishes information about IRA contributions each year. The last report (“Research Fundamentals”) that I saw came out in December 2010. I’m not certain that they would have the information that you’re seeking but a welath of information is published by them.