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Which Roth to Rollover, His or Hers?
We just lately retired early and have the chance to do a 20k Roth conversion for 2024. My spouse and I each have conventional balances, with hers being about 30k and mine being about 700k. I’m 9 years older than her, so I had thought that possibly it might be higher to transform hers so it grows longer and in addition it’d simply be good to shut out her conventional IRA sooner to have much less accounts. We are going to most likely want to tug from our Roth contributions since we’re early retirees, so there’s that too. What are the opposite issues that I ought to be when deciding this, or does it even matter?
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Re: Which Roth to Rollover, His or Hers?
SurferLife wrote: ↑Mon Sep 02, 2024 10:40 pm
We just lately retired early and have the chance to do a 20k Roth conversion for 2024. My spouse and I each have conventional balances, with hers being about 30k and mine being about 700k. I’m 9 years older than her, so I had thought that possibly it might be higher to transform hers so it grows longer and in addition it’d simply be good to shut out her conventional IRA sooner to have much less accounts. We are going to most likely want to tug from our Roth contributions since we’re early retirees, so there’s that too. What are the opposite issues that I ought to be when deciding this, or does it even matter?
Usually talking, I might think about you’d work on a Roth conversion for the older individual, assuming a part of your objective is to cut back the IRA steadiness earlier than RMDs start. Or have you ever already began with RMDs?
Will partial IRA to Roth conversions be an annual occasion, or is that this a one time factor?
Regards,
“All of us could be higher traders if we simply made fewer choices.” – Daniel Kahneman
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Re: Which Roth to Rollover, His or Hers?
retired@50 wrote: ↑Mon Sep 02, 2024 10:48 pmSurferLife wrote: ↑Mon Sep 02, 2024 10:40 pm
We just lately retired early and have the chance to do a 20k Roth conversion for 2024. My spouse and I each have conventional balances, with hers being about 30k and mine being about 700k. I’m 9 years older than her, so I had thought that possibly it might be higher to transform hers so it grows longer and in addition it’d simply be good to shut out her conventional IRA sooner to have much less accounts. We are going to most likely want to tug from our Roth contributions since we’re early retirees, so there’s that too. What are the opposite issues that I ought to be when deciding this, or does it even matter?Usually talking, I might think about you’d work on a Roth conversion for the older individual, assuming a part of your objective is to cut back the IRA steadiness earlier than RMDs start. Or have you ever already began with RMDs?
Will partial IRA to Roth conversions be an annual occasion, or is that this a one time factor?
Regards,
We cannot begin RMDs for 17 extra years. I had deliberate to do Roth conversions annually, however we determined to start out a farm enterprise so we’ve got began to earn some small revenue, so possibly we’ll do conversions some years and never others, however the thought is to do conversions once we can.
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Re: Which Roth to Rollover, His or Hers?
SurferLife wrote: ↑Mon Sep 02, 2024 10:54 pm
We cannot begin RMDs for 17 extra years. I had deliberate to do Roth conversions annually, however we determined to start out a farm enterprise so we’ve got began to earn some small revenue, so possibly we’ll do conversions some years and never others, however the thought is to do conversions once we can.
Given the lengthy runway in entrance of you (17 years) earlier than RMDs start, you may convert both one, as there ought to be loads of time to transform as a lot as you would like.
Regards,
“All of us could be higher traders if we simply made fewer choices.” – Daniel Kahneman
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Subject Writer
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Re: Which Roth to Rollover, His or Hers?
retired@50 wrote: ↑Mon Sep 02, 2024 10:57 pmSurferLife wrote: ↑Mon Sep 02, 2024 10:54 pm
We cannot begin RMDs for 17 extra years. I had deliberate to do Roth conversions annually, however we determined to start out a farm enterprise so we’ve got began to earn some small revenue, so possibly we’ll do conversions some years and never others, however the thought is to do conversions once we can.Given the lengthy runway in entrance of you (17 years) earlier than RMDs start, you may convert both one, as there ought to be loads of time to transform as a lot as you would like.
Regards,
We’ve different revenue and pensions so we’ll by no means have the ability to convert all our conventional earlier than RMDs.
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Re: Which Roth to Rollover, His or Hers?
SurferLife wrote: ↑Mon Sep 02, 2024 11:04 pmretired@50 wrote: ↑Mon Sep 02, 2024 10:57 pmSurferLife wrote: ↑Mon Sep 02, 2024 10:54 pm
We cannot begin RMDs for 17 extra years. I had deliberate to do Roth conversions annually, however we determined to start out a farm enterprise so we’ve got began to earn some small revenue, so possibly we’ll do conversions some years and never others, however the thought is to do conversions once we can.Given the lengthy runway in entrance of you (17 years) earlier than RMDs start, you may convert both one, as there ought to be loads of time to transform as a lot as you would like.
Regards,
We’ve different revenue and pensions so we’ll by no means have the ability to convert all our conventional earlier than RMDs.
I would not have suspected you’d need to convert all of them. Often, for a married couple, wherever beneath $500k sometimes does not pose an issue. In some instances, married {couples} are simply pleased to be beneath $1 million.
There are good causes to maintain some cash in a tax-deferred account… Charitable giving and late-in-life deductible medical prices are two potential explanation why you’ll need to retain a Trad. IRA steadiness.
Regards,
“All of us could be higher traders if we simply made fewer choices.” – Daniel Kahneman
Re: Which Roth to Rollover, His or Hers?
My state provides a 20K tax exemption for pension or tIRA revenue per individual over 59.5. So there’s a profit to making sure we each have some tIRA steadiness to make it potential to get the total advantage of this exemption in some future tax yr, and this impacts our conversion technique.
