Traditional vs. Roth

Different people are in different situations. I speak as a retiree where Roth’s were not available for much of my working lifetime, and I did not use them even after they became available.

Now in retirement and seeing the effect of Required Minimum Distributions from the Traditional IRA, I have recently being converting enough of the Traditional IRA to Roth each year to max out my current marginal tax bracket. Without conversions, some of the income would have moved into a higher marginal tax bracket as RMDs would have increased with age.

It was a mistake not to start conversions before RMDs started. In some post-retirement years, my marginal bracket was lower than the current one.

Since most of my current conversions are shifting within the same tax bracket, part of the motivation is an expectation that tax rates will increase.

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