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Investing/Strategies / Retirement Investing
|Subject: Re: Roth vs Traditional||Date: 1/21/2013 9:01 PM|
|Author: MurrayS||Number: 71286 of 76418|
Well said, Murray. But keep in mind the need to make those payments last for your lifetime probably keeps your balance large. But mandatory distributions in a traditional IRA at age 70-1/2 can take a big hit--especially if Social Security payments are taxable and consume your lowest tax brackets.
It is probably a good idea to use some of that surplus 15% bracket you describe to do partial Roth conversions and minimize mandatory distributions when you can.
I agree, but a couple thoughts...
I expect we'll have close to $1M in distributions before RMDs kick in.
I've reviewed the RMD tables and I'll consider myself fortunate if I'm forced into our current 33% bracket since that will mean we're pretty much set for the rest of our lives.
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