No. of Recommendations: 0
I am trying to help my parents evaluate whether or not they should convert their IRA to a Roth. I am 24, and I know that the Roth really benfits someone in my position, but I'm trying to find the point when having the tax break outweighs the benfits of the Roth. If anyone knows a good web address that can do this, or just has any comments for me, I would appreciate the help. Fool On!!!
Print the post Back To Top
No. of Recommendations: 0
Greetings, Heater013, and welcome. You asked:

I am trying to help my parents evaluate whether or not they should convert their IRA to a Roth. I am 24, and I know that the Roth really benfits someone in my position, but I'm trying to find the point when having the tax break outweighs the benfits of the Roth. If anyone knows a good web address that can do this, or just has any comments for me, I would appreciate the help. Fool On!!!

I haven't seen many cases where a Roth conversion is a better deal for most folks, but who knows? For some ideas on how to approach this issue see my analysis in this folder at http://boards.fool.com/Registered/Message.asp?id=1040013000441002&sort=postdate It will give you some food for thought and items your folks need to consider.

Regards…………Pixy
Print the post Back To Top
No. of Recommendations: 0
I am trying to help my parents evaluate whether or not they should convert
their IRA to a Roth. I am 24, and I know that the Roth really benfits
someone in my position, but I'm trying to find the point when having the tax
break outweighs the benfits of the Roth. If anyone knows a good web
address that can do this, or just has any comments for me, I would
appreciate the help. Fool On!!!


We don't know the ages or other assets.
If they will not need the money then go to the Roth. The taxes paid on the conversion will reduce the estate tax, no regular IRA income taxes to the beneficiary and the payout on the Roth can cover the beneficiaries life.

If they need the money, a Roth maynot be a good idea.
Print the post Back To Top
Advertisement