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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77550  
Subject: Re: considerations in converting to roth Date: 11/28/2009 9:32 AM
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This, to me, is the key and, so long as you remain in the 15% tax bracket with the conversions, I think you made the right decision. Going into the 25% tax bracket makes it more of a crap shoot with the odds going to the house IMHO.

My view of the risk is slightly different. If you remain in the same tax bracket (convert now vs. when you withdraw from the Roth), then mathematically it makes no difference if you convert or not. The after-tax value is the same.

The one risk that everybody is aware of is that maybe your future tax bracket will be higher, so you'll have a higher tax then.

But the other risk that very few consider is: the possibility that Roth withdrawals will *not* be tax-free in the future. If that happens, you'd pay tax twice, once on the conversion and again on the Roth withdrawal.
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