I am currently (almost) 59. I will probably retire at 65 (62 would be nice but I just don’t have enough yet). I am thinking about doing some Roth conversions to reduce my taxable retirement funds and increase my tax free retirement funds. This late, is it actually worth it? I am paying taxes with today’s dollars as opposed to tomorrow’s dollars, I get that. Is the present value actually worth the reduced opportunity growth of that ~30% tax hit?
Roth Conversion Pros and Cons
byu/VolFan85 inpersonalfinance
Posted by VolFan85
1 Comment
If you don’t have enough to retire at 62, the RMD’s should not be a problem for you at all. I see no reason you would pay 30% today to avoid 22% in the future.