The "break even point" is irrelevant. When you were making deductible contributions, you were agreeing with Uncle Sam to pay the taxes later. You can choose any time to pay up, but the longer you wait, the more you'll pay.One thing to note is the "break even" point, that is the age at which all the taxes paid on the front end start to give you an advantage on the back end. In my case the break even point was age 86! So, if I don't live beyond that, Roth conversions are a losing proposition.
If you die with this outstanding debt, your heirs will have to pay the debt (unless you leave it to a charity). Since the government will eventually get the taxes, how can there be a "break even point"?
Statistics: Posted by celia — Mon May 27, 2024 11:59 pm — Replies 11 — Views 1297