stepford
Thinks s/he gets paid by the post
I have a disproportionately large fraction of my assets (about 60%) in traditional IRAs/401Ks. I've been pretty consistently in the 22% income bracket since ER at 55 and have been dutifully doing Roth conversions ever since, but not always to the top of the 22% bracket. Anyway, halfway from retirement to RMD time my Roth is still less than 10% the size of of the IRA and I'm starting to think Roth conversions aren't really worth the effort for me.
Once the SS/RMD tax torpedo hits in my early 70s I'll be just as consistently in the 24% tax bracket, so it looks like I'm really only saving a couple percent in tax on the money I convert early. 2% of a few $100K is about a $10K difference between doing all the recommended Roth conversions over 18 years and doing nothing at all.
Am I missing something or am I in the window where Roth conversions just won't do much?
PS. I know I'm neglecting potential future changes in the tax code, but when it comes to predictions about the future I'm a follower of Yogi.
Once the SS/RMD tax torpedo hits in my early 70s I'll be just as consistently in the 24% tax bracket, so it looks like I'm really only saving a couple percent in tax on the money I convert early. 2% of a few $100K is about a $10K difference between doing all the recommended Roth conversions over 18 years and doing nothing at all.
Am I missing something or am I in the window where Roth conversions just won't do much?
PS. I know I'm neglecting potential future changes in the tax code, but when it comes to predictions about the future I'm a follower of Yogi.