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|Subject: Re: Traditional IRA to Roth Conversion||Date: 12/22/1999 10:27 AM|
|Author: TMFPixy||Number: 1050 of 20203|
Greetings, Chipsboss, and welcome. You asked:
<<In your article, will you consider the possible advantage of making a partial conversion of a regual IRA to a Roth IRA?
At age 60 I don't think I can live long enough to recoup the losses to income tax that would result from a complete conversion of my IRA to a Roth IRA. Throughout my 60's, I have the option of taking withdrawals or not taking them. Making small IRA withdrawals, around 1% or 2% a year, and sticking the money in a Roth IRA, benefits my retirement plan. The numbers tell me that it's worthwhile to pay some extra income tax in my 60's to shave a little off my much-higher income taxes when I have to start my IRA withdrawals at 70. That result surprised me. Folks usually say to let the tax-sheltered money ride as long as possible and legal.
Also, will you address the advantages of making charitable bequests from the IRA, so as to avoid income taxes and estate taxes on that part of the IRA?>>
Neither of those issues will be addressed in the next article. After all, both are complicated subjects and there's only so much I can say in 1,200 words or so. However, I will talk to both in future articles over the next year in one way or another.
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