Quote:
Originally Posted by Boomer
"Regrets, I have a few. . .but then again. . .I did it my waaaaaaay".........
au contraire, stu and dew, I have only one regret with this one. Like I said in my response to heims01 (who originally suggested the idea of Roth conversions before RMD age) I did it. I just wish I had done more. It can work quite well for some.
There are retirees in a biz where they can retire in their 50s . . .well. . .there used to be anyway. That's just one example of a scenario where it can make a lot of sense to do Roth conversions, especially if income is lower early in retirement, resulting in a lower tax bracket.
Roth Conversion? You gotta know when to do it, decide to take the hit early, and then — watch it grow again — for years and years. And if there is enough time ahead of you, the RMD can be significantly minimized. I wish I had kept doing those conversions. I was into it for a while. (sigh)
It's like choreography. . .you have to get the dance just right.
My point is that those conversions are something for individuals to be aware of, so they can decide if it can work for them. There is no need to be dismissive of the idea.......Yeah. I know. I see. At least the two of you included a little hedge in your posts. I'll give you that.
Boomer (who sometimes knows stuff, but never pretends she does when she does not)
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Interesting post and if you time converting to a Roth when you have a small income for the year yes you can come out ahead but not an easy thing to think long term about when your income drops a lot.
I was not being dismissive of people converting to a Roth but just gave my thought as to one major negative of doing so. I have thought long and hard about doing this a number of times but the opportunity cost of doing so tells me not to do it. BTW my cpa is in complete agreement with me for whatever that is worth.