Hi, I'm hoping some of you can guide me with the idea of opening a Roth IRA as a "vessel" for future Traditional-IRA conversions?
This would be the last year in which I can open a Roth, because I will not have any earned income next year, thanks to having FIREd in June. :-D
I've read a number of articles about doing the Roth conversion ladder, and most address the strategy as a way to provide income. I don't need to access the income, but it occurred to me that there might be some tax benefits by converting small portions of the tIRA over the years into the Roth (and cost-averaging the tax bill), rather than just withdrawing (when the time comes) from the tIRA and paying taxes at whatever tax bracket rate I happen to be in at the time. Or perhaps it would more of a headache than an advantage, and generate too much paperwork to move small amounts yearly out of the tIRA into the Roth? I may not need to access the money in the IRA as income for a long time.
I don't know what my income will be in future years, it depends on how my taxable accounts do, so it's hard to forecast any future-tax bracket projections.
This is likely a dumb question or not very well thought out... I'm not sure I can articulate it more clearly. I hope it may elicit some insight.
Thanks,
The Pigeon.