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URL:  http://boards.fool.com/wouldnt-it-make-sense-to-withdraw-an-addition-28980648.aspx

Subject:  Re: IRAs & RMDs Date:  12/23/2010  11:12 PM
Author:  MurrayS Number:  67935 of 76397

Wouldn't it make sense to withdraw an addition amount from your IRA, say just short of entering the next marginal tax rate, and roll that amount into a Roth IRA?

As the previous poster said, it depends. If your IRA value is less than $1M at age 70-1/2 and your only other income SS, then I would say no, you would be paying more in taxes (your IRA RMDs should never exceed $100k and the net rate of tax paid on the withdrawals would be below 25%).

I think it would make more sense to start converting or taking withdrawals from the IRA as soon as your income drops you below 25% marginal tax rate since that should be the highest rate most people would pay, even with quite large IRAs.

-murray
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