After doing my research, and especially after reading the many responses on this forum, I have decided to take the plunge and start doing Roth conversions. I am 69, DW is 67. I retired in April of this year, she was been retired for a few years. Both have been collecting SS for past couple of years, currently totaling about 42K. Each of our tIRAs have about 125K, 35K of which is in a stock index fund and 90K in intermediate bond fund. I also have an inherited IRA with about 27K, all of which is in a growth index fund, which is under the old rules, not the 10 year rule. I have been taking the RMD for the past 20 years or so. Last year's was only about $1200. Come January 15 I will have paid about 2K in estimated taxes. If I do nothing now, I will be in the 0% tax bracket and will get the 2K refunded. After playing with some online 1040 calculators, looks like I can withdraw/convert about 15-20K from IRAs, not get the refund and owe no taxes. Anything above that starts me paying taxes. I'd like to stay in the no more than 10 or 12% bracket for now and obviously keep taxes at a minimum for as long as possible. My question is, which IRA does it make the most sense to start to convert first? I would imagine I would do the conversions over a period of years and not in one lump sum? I have Boldin which says to convert the entire inherited IRA this year which to me seems counterintuitive since I can stretch the withdrawals over my lifetime, but what do I know? Second question - I presume I would only convert the equity portion of the tIRAs? I would probably leave a small amount of equities just to be able to rebalance the portfolio as a whole in the IRAs instead of the our taxable account to minimize taxes. I truly value the opinions on this forum. Any thoughts are greatly appreciated.
Statistics: Posted by drspine — Sat Dec 07, 2024 9:24 am — Replies 0 — Views 56