[M2inOR]

Re: converting a traditional IRA to a ROTH IRA

We did this over 3 years for roughly half of my wife's and my IRAs.

There is no easy answer other than when we started back in 2021, there was concern for what would happen in 2025-2026 with the changing tax laws.

Math is required as well as how much in taxes one is willing to pay.

Our conversions over 3 years subjected us to higher federal income taxes. We had moved from Oregon to Florida in 2020 so we avoided the huge tax hit from Oregon state income taxes.

After some research and developing a plan, we hired a ROTH conversion consultant to develop a plan (Craig Wear). The plan went into greater detail than my original plan, but agreed with the overall advantages that a conversion would deliver in the long term.

Stopped converting after 3 years, converted a lot, and only real hurt was being subject to IRMAA for a few years.

A ROTH conversion is not for everyone, so a lot of research is required, in addition to hiring an advisor to assist.

It's all worked out well for us.

The new tax laws might change the process and benefit a bit, so we will revisit in the coming weeks and months.

Our RMDs won't begin until 2026 and 2027. And we deferred taking Social Security until we turned 70 in 2023 and 2024. Fortunately we had savings and a deferred income benefit to tide us over after we retired in 2015 and 2019 (me and wife respectively).

In addition to Craig Wear, there are other consultants who will provide you with a ROTH conversion plan. Just be prepared for that federal income tax hit, and be a Florida resident with no income from other states to avoid that state income tax hit. Oregon's would have been very high for us.