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Personal Finance (Not Investing) • Roth Conversion dilemma

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Realizing that it might be advantageous to convert when filing jointly as opposed to individually could be deciding factor for some.
Now deep in my RMD years, the stress of paying conversion taxes in our early retirement years, seems so minor now when compared to the benefit of the portfolio growth since then. Yes, the growth is the same with or without the conversions, but avoiding the punitive (RMD) taxation on that growth, will give one of you a rare something to smile about when filing as a single taxpayer.
Thank you for your perspective.

I did not have a Roth when I retired early. I did large conversions (for me, in the single tax brackets in a high-tax state) in 2019 and 2021. I do smile when I look at the growth in my Roth. I have different concerns than the OP, though, as I have an adult child who may or may not be able to work full-time, and more money in my Roth will reduce the amount of money that goes to taxes at the very-high trust rate in their trust after my death.

Statistics: Posted by LilyFleur — Sun Sep 01, 2024 3:53 pm — Replies 30 — Views 2538



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