Hi. I’m about 6-8 years from retirement where I’ll be collecting a 100k pension. I’ll be either 49 or 51 years old. I have 457b and currently maxed out in pretaxed. I make anywhere between 150-200k with ot. I have a decent brokerage and still contributing as well. My original plan was to do Roth conversions when I’m retired using my brokerage converting about 1 mil. My new plan is to switch to 100% Roth and convert less later and preserve more of my brokerage. I will not need my 457 money at all, its legacy money. I know there some tax drag but I feel like less headaches later is worth losing some gains especially since I don’t need this money to live. I’d like to hear different opinions.
Roth now or conversion later?
byu/Danggang1 inpersonalfinance
Posted by Danggang1
1 Comment
If you do convert (and whether you should at all is arguable), you want to do it when your bracket is lowest.
That isn’t now. Taxes on the conversion have to be paid out of pocket too, not from the conversion itself unless otherwise eligible to make withdraws.