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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (22004)	2/28/2015 4:38:40 PM
From: upanddown	Read Replies (1) \| Respond to of 34328

Jim As far as RMD to Roth, the simple answer is no, you can't do that. The only part of a distribution that can be converted to a Roth is that in excess of the RMD. Now, I know you are a long way from 70 1/2 and still working so it might be hard to move much from your IRA to a Roth right now without getting killed on taxes. If you have a experience similar to mine, there could be a window between retirement and 70 1/2 where your taxable income might be relatively low even if your spending is much higher because you are drawing down a taxable account. Those could be the years to be really aggressive about IRA to Roth conversions if the tax impact is less than what you anticipate after 70 1/2. One regret of mine is that I did not convert more to Roth during those low tax years. Now, with big RMDs and living in a high tax state like CA, OUCH! I pay more tax now than I ever did working but I tell myself...Oh well I got away with very low taxes during the years between retirement at 55 and 70 1/2. The tax man is gonna get you, sooner or later. John