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|Subject: Re: Still don't know whether to convert to Roth||Date: 6/1/2000 11:32 PM|
|Author: foolme1111||Number: 22316 of 77407|
Author: EditorialWe Date: 6/1/00 8:49 PM Number: 22311
Since neither of knows what your marginal tax rate will be when you retire, this question is nearly impossible to answer satisfactorily. I will now attempt the impossible.
You apparently have a good income if you are in the 33% tax bracket (1700/5500), and you may want to look at whether you would even be allowed to make the conversion. If your income exceeds a certain level (sorry, I don't have the numbers) you are not allowed to make this conversion.
Mathematically, the two options come out to exactly the same result if your tax rate when you retire is the same as it is now, with the advantage swinging to the Roth conversion if your retirement tax bracket is higher than now, which is what we hope will happen.
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