Reported about 1 year ago
Financial advisor Brandon Renfro discusses the idea of a 70-year-old with $1.4 million in traditional IRAs converting $160,000 yearly to Roth IRAs to reduce future RMDs. He emphasizes the factors to consider like current and future tax rates, control over retirement savings, leaving assets to heirs, and whether Roth conversions align with individual goals. Renfro suggests estimating future taxable income without conversions, making assumptions on investment returns, and comparing tax liabilities. While unable to predict future tax rates, he uses the potential sunset of the 2017 TCJA as a baseline assumption. Renfro advises on finding a financial advisor and maintaining an emergency fund in high-interest accounts.
Source: YAHOO