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Subject:  Re: IRA for post 65 yr olds Date:  12/7/2010  2:22 AM
Author:  0x6a74 Number:  67806 of 88047

That being the case, you should look carefully at the numbers before making a Roth conversion. Yes the funds from the Roth are tax free when withdrawn, but you will have a big tax hit up front and it takes a long time to earn that back. The tax hit once you stop earning money will be much lower - assuming you take funds out over a period of 10 or 20 years.

yes, one should Carefully look at numbers (esp'ly since we don't know OP's situation .. retired? Age? other income??)

but the tax hit of conversion need not be "big" -- if done over a period of years..

advantages (IMO!)

Roth earnings sheltered* ,principle already taxed
RMDs from IRA lower (more flexibility /no RMDs from Roth*)
Roth goes to heirs slick and tax-free (rules for inherited IRA a bit complicated ...)

last couple years (should have started sooner) : i've done a rough cut of my taxes in Dec. then "what-if'd" various conversions to and convert what Feels like a comfortable tax bill.

*UNTIL the law changes --another advantage of my plan -- it can change as law changes
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