How many of you knew that your SS could be taxed up to 85%? It's true! It depends on your Adjusted Gross Income (AGI).
Villageswimmer mentioned "bogleheads dot com", a very good site on all this.
Yes, you need to know how long you will live, what the stock market will do and what Washington will do to make a good decision. So we make some assumptions - we will live to the average age, taxes will go up and the stock market will revert to the mean.
If I convert my IRA over the next few years before I collect SS, I know what my taxes will be. If the tax table doesn't change, I know what my taxes will be in the future. Taxes will change, we just don't know by how much or when, but they will go up.
Yes, I will "lose" money on the conversion in the short term, but, if I let the ROTH grow, it will support me in my old age when health care prices go up.
I think we have a good debate going here, please let me hear more on this.
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