I have an in-law whom I was recently speaking with about their upcoming retirement plans. My in-law once owned their own optometry clinic, but has since sold it to a previous partner and is now works for the practice, but no longer owns it.
He has a SEP IRA and taxable accounts (many municipalities bonds in the taxable accounts, though equities too). He didn’t go into detail details, but I gather it is at least a mid 7 figure amount earmarked for retirement. Both he and his spouse are in excellent health, and both in their early 70s.
He does pay an advisor a percentage to manage some, but not all of his investments, and offer occasional advice. He has no interest of self managing his invest investments anytime soon.
But he was lamenting about upcoming RMDs when he retires in a few years and at that time let me know that he doesn’t have a Roth option.
I’m not sure what tax he is in currently, but assume they will be in a slightly lower tax bracket the year he stops working. I don’t know enough about converting traditional accounts into Roth accounts, especially for someone currently over the allowable threshold to even contribute to a Roth, but it has me wondering if there would be some benefit to slowly convert some of this retirement money into a Roth so long as it doesn’t put him into a higher tax bracket.
Can anyone relate to the situation? I wish I had more details to provide, and can certainly follow up in the future. I’m hopeful that the community can offer some initial advice. However, even with the limited details I’m offering.
He has a SEP IRA and taxable accounts (many municipalities bonds in the taxable accounts, though equities too). He didn’t go into detail details, but I gather it is at least a mid 7 figure amount earmarked for retirement. Both he and his spouse are in excellent health, and both in their early 70s.
He does pay an advisor a percentage to manage some, but not all of his investments, and offer occasional advice. He has no interest of self managing his invest investments anytime soon.
But he was lamenting about upcoming RMDs when he retires in a few years and at that time let me know that he doesn’t have a Roth option.
I’m not sure what tax he is in currently, but assume they will be in a slightly lower tax bracket the year he stops working. I don’t know enough about converting traditional accounts into Roth accounts, especially for someone currently over the allowable threshold to even contribute to a Roth, but it has me wondering if there would be some benefit to slowly convert some of this retirement money into a Roth so long as it doesn’t put him into a higher tax bracket.
Can anyone relate to the situation? I wish I had more details to provide, and can certainly follow up in the future. I’m hopeful that the community can offer some initial advice. However, even with the limited details I’m offering.
Statistics: Posted by tomwood — Wed Dec 11, 2024 9:53 am — Replies 3 — Views 147