The One Money Move that Could Add Years to Your Nest Egg

[@leonardhollerbach9806]

Mmm if your income level is nothing after you retire then you pay less in taxes. I’m not saying you shouldn’t consider conversion but in some instances you may be paying less on taxes in the future then what your paying now even if taxes go up as everybody is predicting. Or at least that’s what my financial advisor said to me in my case.

[@sptole]

Correct, however.... What if tax rates increase? What about your SS income? Over certain levels, it will be taxable. Not only will you pay taxes on your IRA/401k withdrawals, those withdrawals may expose more of your SS to taxation. And don't forget IRMAA. IRA/401k withdrawals could result in higher medicare premiums.

[@Carnegiered52]

Is there not a $8000 limit on yearly Roth conversion?

[@johnmchenry8293]

No, that is the limit on annual contributions. Rollovers are IRA money that was already subjected to annual limits.

[@sptole]

Annual Roth contributions are limited. Conversions from IRAs to Roth accounts, however, are not limited. Be mindful of how much you convert in any given year, however, so you don't creep into a higher tax bracket. Let us know if you need any help!