Personal Finance (Not Investing) • 5 years of trad IRA earnings to backdoor roth?

Thank you for considering - I know this is a well worn topic but would really appreciate input. I stopped doing a backdoor roth a few years ago and have done a traditional IRA though I'm now rethinking that strategy. We max out all retirement/tax deferred accounts (403, 457, 529, IRA) and contribute a roughly equal amount to non-tax advantaged brokerage accounts. The hope is that we will have more than enough savings to live comfortably in retirement and likely pass on something to the next generation/charity. From an estate planning standpoint and from a retirement savings diversification standpoint, does it make sense to take the tax hit on a several years worth of Trad IRA earnings to convert to roth? Currently have a total of 138k in his/her traditional IRA (of which 62k is appreciated growth). We would also need to transfer a relatively small SEP and larger rollover IRA into a workplace 401k (hopefully they will allow) to avoid pro rata as I understand it. I anticipate another 15-20 years earnings at top marginal tax rate (with subsequent backdoor conversions each year). My details:

Emergency funds: yes

Debt: 30 year mortgage 445k @ 2.875%

Tax Filing Status:Married Filing Jointly

Tax Rate: 37% Federal, 5% State

State of Residence: OK

Age: 47/45

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 20-30% of stocks

Please provide an approximate size of your total portfolio: $2.6 million

Contributions

New annual Contributions
$23000 his 403b (total stock/total international 80/20)
$23000 his 457b (same as above)
$7000 his IRA (VTSAX)
$7000 her IRA (VTSAX)
$78000 taxable (5k VTSAX)
$8300 HSA (FXAIX)

$35000/year for three 529 accounts (children 12/10/5). Total of $300,000 for all three kids thus far (on target to fully fund 4-year private).

Thanks again for considering.

Statistics: Posted by Ted17 — Thu Aug 29, 2024 8:53 am — Replies 1 — Views 116

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