There is no doubt I will pay taxes on the IRA, the only question is how to minimize them. If I convert now (or in the next few years) and the ROTH portfolio goes down, I lose. If it goes up I win, true even without converting ,of course. The difference is that if you assume the market will go up over the next 20 years (which it should) then you may end up paying more taxes by NOT converting then converting. Of course you could end up paying more taxes if you convert too much at one time. Those sheets I mentioned are supposed to help with that decision. The problem is understanding what they are telling me. I was hoping to find someone who was familiar with those programs.
|