This is an interesting discussion for the most part. The biggest variable in my mind is the growth of the investment in the future. If you convert and get outstanding growth going forward, that growth will be realized tax-free. On the other hand the money you paid in taxes would also be growing at a high rate. Several years ago there was a one or two year opportunity to convert to a roth and pay the taxes over three tax years. That was in a time when the market was low, and I considered jumping on the opportunity because the taxes would not have been onerous, and spread over three years would have been affordable. As the market has come back I think I would have enjoyed a considerable advantage, however I vacillated and ultimately did not pull the trigger. Now with the market back, and having to pay all the taxes in the year of the conversion, I feel it would be too painful. Not that paying the taxes on the RMDs isn't but I guess it's a "pick your poison" question.
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Oldcoach Ed
"You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken"
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