LNS-
Apparently, articles like this have instilled enough fear into you to prevent you from taking advantage of a Roth. You should weigh all the numbers and tax assumptions, your estate plan and personal goals. Then, decide if it works for you. It may not.
I have done that and I have also had two professional analyses done for me (my account is very large) . In my case, it definitely works. It works even better if one believes, as I do, that the 35% tax bracket goes even higher and that avoiding the new 3.8% Medicare tax starting 2013 is a real money saver. My goal is simple....let the account grow without ever being forced to take distributions and at death it goes to the kids who will then take RMDs based on their longer individual life expectancies.
Now, if you buy into the author's worry about a possible 5% tax/fee in the future, then stay paralyzed. Keep your traditional IRA and, instead, pay the extra 3.8% as well as any increased tax rates. Oh, and be FORCED to take distributions at age 70 1/2 whether you need the income, or not.
It's a complicated subject, LNS, and needs careful consideration. Studying the merits and drawbacks of a conversion are essential, not buying into simplistic fear mongering by some blogger. |
