Your Roth Conversion Strategy for the Next 10 Years and Beyond

You think the tax rates in the future will be higher than they are today and are contemplating a Roth Conversion. I'll be discussing how much of your IRA you should convert, in what amounts, and over what timeframe. What's going to be best for your retirement?

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[JA-zhew]

Great video!! Thanks. In addition to the tax rates increasing in 2 years, the brackets will also be compressed. A double obstacle to maximizing conversions. The next 2 years will be as good as it gets unless Congress extends the sunset date. 🤞🤞

[jcredeur]

i think the one item that is not mentioned is that if you go to the 24% tax bracket at retirement (65 years old) and take up to $383, 900, it will cause you to pay more in medicare surcharges for that year...If Medicare is roughly $175 a month, you may be forced to pay and additional $350.00 dollars more (surcharge) each month. So your medicare will cost you over $500 a month...you need to align the federal tax bracket to the medicare tax brackets to minimize that hit

[Thebink]

David - what are your thoughts on current retirees (age 63) with substantial 401Ks ($7M+) who would be in the current 37% marginal rate when doing the conversion? Every analysis I do shows the present value cost not exceeding the future benefit where I model substantially higher rates. The marginal rate in my state for high earners is 9%+ so I need to add that in (or move to Florida!)

[scmsean]

Nice to see someone that promotes Roth. I've put most of my money into Roth 401K, but still have a lot in traditional from matching. Currently working 2 jobs my income is too high to convert. Still put money into Roth, but not sure converting is good idea for me.

[rickstephan]

Great video as it directly applies to this 60 year young retiree. But I can't help but think we have much bigger short term problems than rising taxes.