Hello,
Trying to figure out if this makes sense or not to do.
Here is the situation: Married, dual income - both around 39 years old. About half of the long-term retirement savings are in a 401k and the other half are in an IRA that was rolled-over from a 401k.
I'm trying to consider if it makes sense to take the hit and pay federal and state taxes to do a backdoor Roth IRA conversion from the rolled-over IRA, so we have about half of our retirement savings in a Roth and the other half in a 401k.
If this does seem like a good strategy, the brokerage firm is asking what % I want them to hold for taxes during the conversion. I have no idea where to start figuring this part out. Do I use the tax rate that we fall into for our regular tax bracket, the overall effective tax rate from when we filed last, or something else?
Any insight would be most helpful!
Submitted August 01, 2017 at 10:37AM by billimek http://ift.tt/2f4YxKb
