Skip to main content
No. of Recommendations: 1
MataroPete asks,

Now that I'm 65, I'm planning a big Roth conversion this December.

So, you'll have one big (((huge))) taxable event, one year only, correct? One and done as they say.

</snip>


Absolutely not!

I'm doing annual Roth conversions over the next 7 years to age 72 when the RMDs are currently scheduled to start for me. Each annual Roth conversion will be sized to top out the tax bracket just below the bracket I'll likely be in when the RMDs start. Of course, there's a chance (likelihood?) that bull and bear stock markets will change the target tax bracket from year to year.

It's a moving target, but the only certainty is that doing nothing means a higher tax bill.

intercst
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.