MurrayS,When you divert money or convert from a traditional 401k or IRA, the income is tacked on top of your existing income and taxed at your highest marginal rate. In my case, that's above 30%[SNIP]Bottom line, it made little to no sense for us to convert a traditional IRA to a Roth. Of course, if you're in a lower marginal tax bracket (15% or below) or you will have a substantial income in retirement, a Roth will make more sense. It's also a great idea to have a Roth to have more tax flexibility and avoid RMDs.Two very good points. That is why it is vitally important to look at the situation on an individual basis.In my case, I started doing the conversions after I retired. I plan the amount based upon how much room I have to the next hop. If I go over or under a little, I can live with it. The biggest thing for our situation was nearly doubling our income when I turn 70. This gives me 15 years to nibble off some of the trad IRA funds at a low impact.Gene
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