Anyone considering moving funds from a 401K or trad IRA to a Roth
hmmmm... OJ's post elsewhere got me to doing some thinking and searching. It seems now that the market is down, it might be a good time to move some funds from a 401K or traditional IRA to a Roth IRA, and paying the taxes now.
I realize there are many things to take into account.
One's tax bracket today
One's expected tax bracket at retirement
One's age and life expectancy.
Amount of money I will have to scrape up to pay the taxes now...right...when the move is made? or would they be made in 2009? or should they be made as estimated taxes in 2008 to avoid the 10% penalty?
Hmmm...seems my money is growing, but I am also growing the future taxes to be paid to Uncle Sam.
At 57, retired, and in good health, I'm left wondering what if anything might be a smart move. Guess I should maybe try and use one of the on-line calculators to see if it might be in my best interest to do some moving now, or the near future.