Quote:
Originally Posted by JohnN
I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.
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I regularly laugh at financial advice on what you need to retire. All you need to know is how long you will live, rate of inflation till you die, rate of return on your investments and the number can be calculated. Oh and throw in what will kill you A car crash is far less expensive then say cancer or Alzheimers or????? Oh and the tax rate till you pass.
All are unknown.
I think the option has been lessened. My mom left my sister and me her IRA as an inherited IRA. She only paid tax on what she was forced to withdraw. It is not much money. I do face a required minimum distribution. At no charge my brokerage, I think they all do sends us a letter as to how much we need to withdraw. It is not much money.
My parents didn't have much. It is a gift that keeps on giving long after you pass.