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Forums » Work & Retirement » Retirement Planning » 10 Years Left, Switchin 401K Contributions to Roth
10 Years Left, Switchin 401K Contributions to Roth
posted at August 10, 2013 6:46 PM EDT
Re: 10 Years Left, Switchin 401K Contributions to Roth
posted at August 10, 2013 9:37 PM EDT
First: November 27, 2011
Last: December 3, 2013
In Response to 10 Years Left, Switchin 401K Contributions to Roth:
I'm 55 and have 5 to 10 years left to go. I have a decent amount saved in traditional IRA's and 401K between the Wife and I. I am currently trying to switch our biweekly contributions over to all Roth, and I was wondering if this makes good sense. I was thinking that since we have a decent amount in traditional funds that maybe it would be better to forgo the immediate taxes advanages in favor of having some money in a Roth. My basic thinking is that the Roth could run another 20-30 years with a more aggressive portfolio, while the money in the traditional IRA & 401k's would be a more conservative portfolio. The draw down would take place on the traditional funds first and the Roth wouldn't be tapped until much later. I currently don't have enough money outside the traditional IRA & 401k's to convert them to Roths at this time, so I figured saving the rest as a Roth would be a good subsitute. Any thoughts?
Posted by otagoodcar
Yes, it sounds like a good plan.
I was going to tell you to do some conversion too but you answered that in your last sentence.
Remember you don't have to RMD until 70.5 but make sure that you understand the timing on that ver 1st RMD because some folks get stuck with (2) RMD in ibe year. So you might want to start RMD in the year you turn 70.
On ALL the accounts make sure you both have your beneficiaries in place.