I have all three account types. I think I am a bit different in that my brokerage account is about 30% bigger than my IRA and Roth. I see alot of information to consider roth conversions, however, when I turn 60 why not just pull from the IRA? Instead just let the brokerage account continue to grow. If I do the roth conversations I'm still creating a taxable event but likely even higher as I would be pulling from the brokerage account and also incurring a taxable event moving me into a higher bracket?
I like your thinking - Roth conversions do not always make sense, but they are certainly the "talk of the town". If you need to liquidate highly appreciated investments from your taxable account to cover the taxes on the Roth conversion, the juice may not be worth the squeeze. The withdrawal order is really dependent on how much income you need (and marginal tax bracket as a result), your balances in each bucket, cost basis in the taxable account, etc. If you'd like, you can send over rough balances to jake@sparkwealthadvisors.com and I can see what might make sense in your scenario. Thanks for your comment! - Jake
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I have all three account types. I think I am a bit different in that my brokerage account is about 30% bigger than my IRA and Roth. I see alot of information to consider roth conversions, however, when I turn 60 why not just pull from the IRA? Instead just let the brokerage account continue to grow. If I do the roth conversations I'm still creating a taxable event but likely even higher as I would be pulling from the brokerage account and also incurring a taxable event moving me into a higher bracket?
I like your thinking - Roth conversions do not always make sense, but they are certainly the "talk of the town". If you need to liquidate highly appreciated investments from your taxable account to cover the taxes on the Roth conversion, the juice may not be worth the squeeze. The withdrawal order is really dependent on how much income you need (and marginal tax bracket as a result), your balances in each bucket, cost basis in the taxable account, etc.
If you'd like, you can send over rough balances to jake@sparkwealthadvisors.com and I can see what might make sense in your scenario. Thanks for your comment!
- Jake