Thank you for the response and including the reasons why. I wasn’t thinking about it exactly that way so it was very helpful. Thanks again.I think #1 is the best strategy because you want the money transferred into your Roth as quick as possible to (1) reduce the possible tax on the growth,I suspect #1 is the best strategy to reduce tax consequences of the built up after-tax contributions but would love any input from this group. I suppose the advantage of #2 is creating a 'cleaner' tax situation where contributions and conversions happen within the same year, but reading the above that isn't a requirement.
(2) to start the compounding in the Roth, and (3) to start the five year clock on the conversion if you might want to withdraw the converted amount earlier than 59.5 (e.g., for early retirement or an emergency).
Statistics: Posted by DoubleDraw — Wed Oct 02, 2024 8:59 pm — Replies 19 — Views 1565