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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124956  
Subject: Re: Take CG or Convert to ROTH Date: 10/12/1999 11:21 PM
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buznitz asks,

For the next 4 years I will be in the 15% bracket by about $5000 below 28% bracket. Sitting on long term CG and also have regular IRA's. Should I take CG and pay 10% or should I convert to ROTH and pay 15% up to the next bracket? Will be in 28% bracket when minimum distributions are required in the future.

I'd go for it.

There really isn't much risk in doing a Roth conversion if you're in he 15% bracket. If you were talking about doing a conversion at the 28% bracket, it's not such a slam dunk -- a market downturn might put you back in the 15% bracket when you're retired. At least under current tax law, 15% is as low as it gets.

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