I am a married retired physician planning to do a multi-year IRA to Roth conversion. The IRA to Roth conversion will reduce our estate taxes and reduce the taxes paid by our heirs even if the stretch IRA provision changes to a 5 year withdrawal. Our plan has been to do a significant amount of the conversion during the years prior to starting social security at age 70 and RMDs at age 70 1/2. We recently used then Optimal Retirement Planner an online program that assesses the financial consequences of Roth conversions. The program recommends a relatively equal amount yearly conversion.
Our marginal tax rate at conversion would be the same with either approach. My thought is to go ahead and front-load the conversions since an increase in tax bracket will likely occur with the passing of the first spouse so best to convert as much as possible at current marginal tax rate. Comments and suggestions are appreciated.
Our marginal tax rate at conversion would be the same with either approach. My thought is to go ahead and front-load the conversions since an increase in tax bracket will likely occur with the passing of the first spouse so best to convert as much as possible at current marginal tax rate. Comments and suggestions are appreciated.
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