Letters to the Editor
To the Editors:
“New Rules for Converting to a Roth IRA” [by William Reichenstein, Douglas Rothermich, and Alicia Waltenberger, January 2010 AAII Journal] was an excellent look at converting to a Roth, especially since it approached the subject from the perspective of using IRA funds to pay the taxes.
I am curious about two other things that might affect the case in which tax rates rise in retirement. First, we are not generally allowed to keep our IRA funds intact, but are required to make mandatory withdrawals every year. The amounts not taken for taxes may be invested and may partially offset taxes paid early (annually). Second, converting a part of an IRA to a Roth would lower the total amount left in the standard IRA, thus reducing the mandatory withdrawal and possibly providing an additional tax saving
Dr. Reichenstein Responds:
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