No. of Recommendations: 0
Hi! Janzy, I would take a different tack. The general idea would be to tranfer assets into the Roth at a rate that minimizes the annual tax impact. You can gradually move portions over each tax year without
strapping youself for cash. Once in the Roth you can
compound interest,dividends stock payouts etc. till you reach the magic age of 59 1/2, taxfree for ever.
What our fellow posters are overlooking, is if you let
it grow in the conventional IRA and transfer into Roth later on, your tax liability will be huge by the age of 59 1/2, assuming that the rate of growth in either IRA will be the same! If I'm off-base will somebody
critique. I'm retired and looking at an awesome tax
liability in withdrawing from a large R/O IRA.
- - Matthew
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