Quote:
Originally Posted by leftyf
I also like my IRA, but as soon as I turned 59 1/2, I began drawing out the max that my accountant could write off and put it in a Roth IRA. That way when I turn 70 1/2, the amount I must draw from my regular IRA is vastly reduced I can withdraw tax free at any time from my Roth IRA. Don't leave all your money in a regular IRA until you turn 70 1/2, the taxes will be much higher.
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I have thought of doing a partial rollover from my IRA to a Roth for several years. My Investment Adviser and Accountant both presented arguments against doing a rollover. Using a Fidelity Minimum Required Distribution Calculator, I got a rude awakening. The value of my IRA peaks at age 81, but the RMDs keep getting bigger. I'm assuming a conservative 6% return per year.
Assuming retirement income from Social Security and pensions goes up every year and adding IRA distributions...a higher tax bracket is inevitable.
I would ROTH IRA it all. Oops, I'm 70+!