Ryan McKeown, SVP, Financial Advisor at Wealth Enhancement, was featured by The Wall Street Journal in “How Seniors Can Do Smart Roth IRA Conversions.”
In general, Roth IRA conversions make sense if the saver’s tax rate on the converted amount is lower than what the tax rate would be on future withdrawals.
‘Consider, says McKeown, a conversion that pushes a taxpayer from a 24% top federal rate to 32%. In that case, it could be better to lower the conversion amount to fill up the 24% bracket and convert more in another year. He also analyzes his clients’ Medicare surcharge brackets to avoid triggering higher ones.’
Access the full article written by Laura Saunders here.
