No. of Recommendations: 0
Mom is considering a Roth conversion of two IRA accounts she has (based upon recent conversation with a fincancial
planner). Each IRA has approx $12,500 for a total of $25,000. She is 62.5 years old (63 in November). She was told
that she would definitely benefit from converting at this time. I am not so sure...
She works as a RN. Plans to work until approx 70 years old. Puts $2,000 per year into a traditional IRA. Does not
have a retirement plan at work...of any kind. Makes approx $49,000 per year. Has a home, partially paid
off--otherwise, no retirement savings....except SS. Divorced by approx 20 years, lives alone. Interested in learning more
about investing.
Am wondering if it would be better to just start putting money into a new Roth IRA, rather than convert. Does she not
have to pay taxes to convert her traditional IRA? If I have read the recent posts clearly (thanks to TMF pixy and all
others) then she would need approx 10 years for the Roth to become more favorable.
Any help, thoughts or advice would be appreciated. I shared with Mom that I would email any feedback to her and am
encouraging that she go to the Fool site to learn more. She will, in time. Maybe this will get her even more interested.
Thanks for any thoughts.

I did not try and run any numbers but at her age I would only think of a ROTH if she intended to leave the assets as part of her estate. The way I read your post she will need the funds in retirement. Also she maybe in a lower tax bracket then than now. I would not switch. I think I would go to the ROTH for future contributions with the idea of using the regular IRA money before using the ROTH in retirement.

If she does make the change she should not have to sell what she has and buy something else from the planner.

Since she has no other savings this is the time to cut expenses and increase savings. I could also see paying off the mortgage before retirement.
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