Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
We are doing partial conversions for the few years between retirement and starting RMD.

The previous posts covered many items. Two other items for ROTH conversion is managing RMDs and estate planning.

An inherited asset that carries the most income taxes is a traditional IRA (and other pre-tax retirement plans) and an inherited asset with the least income taxes is a fully qualified ROTH IRA (ROTH 401K).

Conversions during low income years minimizes income taxes. Converting to a ROTH IRA decreases RMDs. ROTH 401Ks require RMDs. A ROTH 401K can be rolled over to a ROTH IRA which doesn't require RMDs.

The most "successful" ROTH conversions are for assets that aren't planned on being used for a long time or are part of an estate plan.

Many will require long term care. Once long term care qualifies as a medical expense then long term care expenses are deductible as a medical expenses. At that point the issue normally becomes a cash flow problem more than a tax issue.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.