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Convert an ira to a roth ira?

my wife will turn 70 in april,in october she will have a rmd to deal with.would it be better to pay the taxes and do the conversion.

Feb 07, 2016 by Dave in  |  Flag
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Hi Dave, That is a very good question that often has no hard and fast answer. In some circumstances, converting makes a lot of sense. In others, it does not. Here are the factors to consider when making your decision: 1. Tax Bracket - If your tax bracket is currently very low and converting the entire amount to the Roth does not push you into a tremendously higher bracket, it may make sense. 2. Objectives with the money - If you do not need the money now and are planning to leave these funds to heirs when you die, this is also a situation where conversion may make sense so the money can remain tax-free and untouched until it is left to your surviving heirs after the conversion.

Just remember, once you convert, the taxes must be paid in that tax year, so depending on your bracket and the balance in your account, that could be a hefty sum. Good luck!

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