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Subject:  Re: Retirement Account Allocation Date:  11/21/2003  10:27 PM
Author:  pauleckler Number:  37950 of 88495

The real question comes down to, do you need income from these accounts to support your retirement, or is this just extra funds.

At age 60, you can remove funds from your T-IRA any time you like without paying penalties. The question then comes, when do you want to pay taxes on them. At age 70-1/2 you will be forced to take distributions. So then you will have to pay.

I do not agree with your flat 30% tax statement. If you convert a 750K T-IRA to a Roth, I would be surprised if your tax rate remains 30%.

So begin by noting that the real value of your TIRA accounts is 30% less than you have shown.

When will your lowest tax rate occur. You can probably arrange an artificially low tax rate if you wanted to. Put all your taxables into tax free investments. Then take T-IRA distributions or Roth conversions on how ever much you want to pay taxes on.

A key question is whether to put your T-IRA distributions into a Roth or keep them in a Taxable LTBH account. Taxable can be OK especially if you need the money. Roth ties up your funds for 5 years, but then no further taxes are due.

The right answer to your question requires a detailed retirement plan.
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