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Submitted 76 days ago...

Trudy141

Trudy141

New User (1)

Convert to Roth IRA in Retirement

I am a 61 years old retiree receiving a pension and have no need to tap my IRA. If I wait till 70 1/2 to withdraw the Required Minimum Distribution, it will place me into a very high tax bracket. Over the next ten years would it be wise to withdraw part of it yearly into a Roth IRA and pay the tax now? This will keep my tax rate lower now and reduce the remaining amount in the IRA so that my RMD will not be as high and thus keep me in a lower tax bracket when I turn 70 1/2.

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Answer 1 / 1 - Submitted 76 days ago...

Reader

Reader

Expert (713)

You cannot contribute to a Roth unless you have earnings. Otherwise the idea would be a good one.

Or, do you have a spouse that has earnings?

If you are considering "conversion" of traditional to Roth, the tax hit probably isn't worth it -- you might check with your tax advisor on this.


This answer was edited by Reader 76 days ago.

Reason: expanding discussion

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Convert to Roth IRA in Retirement

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