Spread Roth Conversion or Do It All At Once?
Current Age is 67. Social Security expected to be received at 70 – approximately in 27 months from now.
Subject to IRMMA assessments currently. Single and in the 24% tax bracket. About 85% ordinary income and 15% capital gain. No state tax.
401K approximate value $1.3 million. Presumably enough free cash to handle the tax burden.
The question is spread the conversion to Roth IRA over two or three years or do it all now?
If spread, what amounts in the different periods?
Permalink Submitted by Maria Ku on Wed, 2021-05-19 23:10
so I would err on an earlier conversion, but check marginal tax rates for fed & state before making your decision. Also, some states (CA) change quite a bit once your taxable income reaches $1M.