I'm 73 And Retired With $1,500,000 In My 401(k) Should I Convert To A Roth IRA

[@Canoecamper]

Great job explaining this!

[@SicilyJo]

Those upper tax limits would change. No way with those upper tax limits seen in the 1981 chart transfer over to 2026. They would not be in the 21% tax bracket for 2026 if only going by those 1981 numbers in the chart. As we know, and I realize it was just an example made by the presenter, those tax rates in 1981 are not the same as 2017. And even if we go back to the 2017 tiers, those upper limits would change.

[@liberaljoe]

What about investing the RMD that you don't spend in tax exempt municipal bonds? You will not get an S&P 500 return but at 73 do you want that volatility?

[@AZ_Bill]

Outstanding analysis. A Roth IRA is certainly better for inheritance.

[@joeholloway4558]

I don't know how you can make a fair comparison of 1981 rates to now if you don't address the impact of inflation. The minimum wage was $3.25 an hour. That 33k at %16 rate was probably the spending equivalent of closer to 150k now. That 101k at %37 tax was probably closer to 500k in today's dollars. Most people probably fell in the %14 bracket back then. My guess is my dad probably made between 20k and 25k that year.

[@blueridgewealth]

We did account for inflation in the calculation, all of the brackets are adjusted to todays income, watch again

[@Bondbeer]

The answer is no

[@crimson25543]

Not sure how you got to $284,116 to convert total. Wouldn't a couple's first $22,000 of income (using 2023 tax rates for married joint) be taxed at 10%? Then the next $67,450 be taxed at 12%, then the next $101,300 be taxed at 22%? I understand the argument that 24% tax rate is < 25%, but personally I wouldn't want to be paying more than 22%.

[@blueridgewealth]

Their first income is taxed at 0% because of deductions, then up the brackets for any income additionally

[@DonStratton-m2v]

Why don’t you include in your discussion the impact of the foregone return on the lower investment balance resulting from paying taxes earlier with a Roth conversion?

[@blueridgewealth]

As you look at the example, the impact of the lower investment amount is overblown. If the tax rates never change then the impact to the account value is exactly the same.

[@davewil3]

Keep in mind that doing withdrawals to convert to ROTH may increase your AGI to the point that Medicare surcharges become a factor.

[@blueridgewealth]

Thanks for the comment Dave, if you watch to the end we pull up the chart that is used to calculate how much more Medicare will cost so we totally agree!

[@Bondbeer]

But certainly withdraw and spend some. Otherwise the RMD on $1.5m is less than $60k.

[@liammclaughlin2881]

The simple answer is NO NO NO NO........

[@HHH-nv9xb]

I bothers me that he said that a lot of financial advisors weren't "trained". Surely these people aren't robots and has a brain of their own. Couldn't these folks take the time and initiative to do their own math and study the rules/laws? Jesus, these are highly paid professionals.

[@blueridgewealth]

Everyone’s training process and credentials are different. Most financial advisors avoid tax conversations by the brokerage firms design which is why they don’t receive proper training if any at all

[@88888gerald]

you should have started in your sixties...