If one had to “waste” IRA dollars on paying for LTC expenses which are “deductible” then isn’t it obvious that particular and previously done Roth conversion was a mistake? How does money is fungible be counter argument? I would like Celia and smitcat to comment on this aspect from their perspective as those are the most ferocious proponents of the conversations on this forum
"ferocious proponents of the conversations on this forum""
Correction please - most ferocious proponent of checking ones numbers and goals to see if conversions and draw down strategies fit your plan.
"If one had to “waste” IRA dollars on paying for LTC expenses which are “deductible” then isn’t it obvious that particular and previously done Roth conversion was a mistake?"
Depends on the numbers and the goals, things like these....
- does one have LTCi?
- what does keeping the tax deferred intact as long as possible 'cost'?
- what is the likelihood %'s and amounts you assign to LTC? (ie - 20% and $100K/year?)
- What tax bracket will your heirs be in?
- What amount(s) of your taxable accounts will you be drawing on?
FWIW - If I pay my parents LTC/medical care I deduct it at my then current tax rates.
Statistics: Posted by smitcat — Sun Jul 21, 2024 11:39 am — Replies 100 — Views 11031