Looking for a reasonable strategy to build my Roth beyond considering IRA to Roth conversions. I have $3.3 million in my traditional IRAs 61 years old. My current balance in my Roth is $27,000. My wife’s Roth is $50,000 and we have $1.4 million in taxable accounts. I am a sole proprietor and income is roughly $180000 annually. Retirement likely within two years. Living in California with $2.2 million in equity in my primary residence.
My income this year will be about $100,000 less than last year which may prompt the question why don’t you do a Roth conversion if you have the ability to pay the taxes. Based on a calculator I used to convert $100,000 from my IRA to a Roth said in 10 years I would’ve made $3300 more than just leaving it in the IRA. I realize it’s one calculator, but that doesn’t sound compelling. I realize RMDs are not for A decade plus for me. Might it just makes sense to continue funding, my SEP, and getting the tax deduction advantage from doing that? Not sure how to analyze what would work best
My income this year will be about $100,000 less than last year which may prompt the question why don’t you do a Roth conversion if you have the ability to pay the taxes. Based on a calculator I used to convert $100,000 from my IRA to a Roth said in 10 years I would’ve made $3300 more than just leaving it in the IRA. I realize it’s one calculator, but that doesn’t sound compelling. I realize RMDs are not for A decade plus for me. Might it just makes sense to continue funding, my SEP, and getting the tax deduction advantage from doing that? Not sure how to analyze what would work best
Statistics: Posted by Chasman — Thu Oct 24, 2024 5:54 pm — Replies 1 — Views 90