I just recently learned that there is a 5 year timer but I thought that started upon creation and/or funding of a Roth account. That is, establishing a Roth account and depositing $1 in it would start that timer.Then you should convert at least some minimal amount now just to get the 5 year clock running. Maybe convert $3k so you can buy some VTSAX in the Roth account. Pay the taxes from your cash reserves and not from the conversion.I have no Roth holdings now at all.
Even if you decide that Roth conversions are not in your interest going forward, at least you got the clock started.
NB: in my opinion, since at some point one of you (spouse) will probably end up moving forward alone in life, at that point having not done Roth conversions while married will really hurt the survivor tax-wise.
But, in other places it appears to say that the 5 year timer is moot if withdrawals happen after age 59-1/2 anyway, resulting in the timer being moot.
Statistics: Posted by josephny — Tue Jul 16, 2024 11:00 am — Replies 26 — Views 880
