Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.