Reply to DC: Hiring a financial professional to do a Roth conversion analysis

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Unless you have
Over $10m in pre tax accounts it doesn’t make sense to do a Roth conversion. Your RMDs will never push you into the highest bracket. 
If you want to use Roth accounts as inheritance vehicles just convert a moderate amount each year or even a sizable amount in a low income year. Just make sure you have the money to cover the taxes. [/quote]

This is incorrect. We have combined 2.5M in pre tax accounts. If we do nothing, our RMDs would knock us into top tax bracket. We’re retiring early to start Roth conversions.

Validated with Projections Lab software and a CFP. [/quote]

Interesting because we have more than that (and some other income) and our projections don’t show us in the top bracket. Could be you also have other income or else the difference is some combination of what returns you are projecting and how much you plan to spend.

An interesting question I could try to figure out is what is the future rate of return where a Roth conversion would turn out to make sense but it’s enough for me to know the answer falls in a range of uncertainty, especially because I’d rather pay more taxes when returns are better than expected vs when they are worse than expected. [/quote]

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