No. of Recommendations: 2
He also seemed to be focused more on people that are in the top 1% of income that consider a Roth conversion while still working. I don't think such is in any way representative of the typical roth conversion:

In the end, the simple reality is that there are many paths to higher tax burdens in the future that don't necessarily involve higher marginal tax rates on IRA withdrawals. Which means ultimately, advisors should be very cautious about doing Roth conversions - especially conversions at rates that are 33% or higher - and the best possible thing to do with a pre-tax IRA may simply be to continue to hold it, and wait for tax burdens to increase...


Example. A married couple that earns $350,000 of ordinary income faces a marginal Federal tax rate as high as 39.8% (including a 33% tax bracket, a 2% impact for the phaseout of personal exemptions, a 1% impact for the phaseout of itemized deductions, and a 3.8% Medicare surtax on net investment income). However, their actual tax liability due would be only $85,231 (assuming 2 personal exemptions and $15,000 of itemized deductions, both partially phased out), which on a $350,000 income is equivalent to a 24.4% effective tax rate.


Any planner worth their salt, heck any halfway knowledgeable investor smart enough to save in a roth, is much more likely to postpone such conversions until after they are no longer employed and no longer earning $350k a year.
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