Quote:
Originally Posted by Kenswing
We’ve yet started to collect SS or draw from our retirement funds. We’re converting as much as we can while staying in the lower tax bracket. I have been contributing to a Roth for years. So the 5 year rule should already be cleared. If not it certainly will be by the time we start taking distributions.
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The part about the 5-year rule that I don't know if I have straight is whether new conversions have to wait 5 years. Somewhere I got the idea that any new money coming through a conversion had to wait its own 5 years. I hope I am wrong. If I am not wrong, that means that early boomers might need to be more aware of the 5-year rule if doing conversions now -- in case they might think they want the money for themselves sooner than 5 years.
Btw, you are doing exactly what I wish I had done more of. Did it for a while, although the accountant at the time asked me why I wanted to pay the kids' taxes. I did not see it like that. I saw that we might want to access some tax-free money for ourselves down the road.
Boomer