[USER]

Would you convert 1.4M in your 401k to ROTH 401k (amount tax owed is 336,000) if you plan to retire in 1.5 years?

My husband will continue working but I plan to retire at 56. To be honest, I can pay the taxes and leave Roth for my kids as inheritance since I have saved enough to live for another 2 decades (SS, IRA withdrawals, possibly selling my NNN).

[Jule]

I’d have my heirs do the conversion at their own tax rate since it will likely be much lower than mine.

[Scott]

I would wait until you’re in a lower tax bracket, and do it a little bit each year then.

[Tom]

I retired in 2019 with everything in pretax accounts. Have been filling out my tax bracket each year doing Roth conversions.

[Sean]

You’ll owe a lot more than 336k in taxes. But if you have an extra 450k or so lying around burning a whole in your pocket, I suppose it’s an option.

Not what I’d consider a great or even particularly good option though.

[Tristan]

Strategically converting yes, wouldn’t do it all at once even if I had the cash to convert.

The less I can pay in taxes the better

[Laken]

Absolutely not! See what your line 15 says, figure out how much you can take without going up a tax bracket and systematically move a portion each year til you’re funds are 100% in tax advantaged accounts.

Read the power of zero by David McKnight.

[Chetan]

If you’re planning on passing this off to the kids then yes. Then they won’t be subject to any sort of RMD‘s.

[Steve]

Start a conversion ladder. If you wait until you’re both retired to do the bulk most of it will be in the 12% bracket.

[Serena]

I plan to start converting in 2 years once we are both retired. The tax liability will be way less that way.

[Author]

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