At 65 years, should I convert to a ROTH IRA
Just watched Ed Slott’s KQED presentation, Retirement Rescue 2014. At age 65 years, should we bother with converting simple IRA’s to Roth IRA’s? And what would be the tax percentage would the tax be on the amount converted?
Permalink Submitted by Alan - IRA critic on Sun, 2014-03-16 15:41
It depends. Are you retired and/or collecting SS benefits? Will your tax rate once RMDs begin be lower or higher than the tax rate you would pay on the conversion? The entire conversion would be taxable unless you have traditional IRA accounts to which you made non deductible contributions in the past. If your only IRAs are SIMPLE IRAs then the conversion will be fully taxable.