Posted on 12/03/2017 5:28:23 AM PST by DIRTYSECRET
The folks at Fidelity advocate it but author Ric Edelman doesn't. Pay taxes now for none later-especially with the good economic news. As much as possible at 39% tax rate now or a measured amount yearly at a lower(12%?)rate? Trumps lower rate goes up to $90k which means we can all transfer $30-60k yearly. Tough call my friends. Talk to me.
Everything coming out of an IRA is taxable. Nothing out of a roth is
So if you are at minimal tax liability when you retire, do it then.
And just a note, Military Retirement and SS are not considered earned income so cannot be used for Roth without a penalty.
I’m going on fifteen years of retirement with social security and IRA withdrawals.
I’ve yet to pay a cent of federal or state income tax.
Well it is taxable your credits and deductions offset it.
I file non-itemized. And just because something is taxable does not mean you will to pay taxes on it. And that’s why it could benefit one to avoid ROTHs, as being taxed at withdrawal from an IRA is not a given.
All I can say is taxable income is taxable income. Your liability may vary.
And all I’m saying is it’s foolish to pay income tax up front when you can avoid it altogether with proper planning.
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