Comments on: Converting a Traditional IRA to a Roth IRA http://retirementreform-blog.com/converting-a-traditional-ira-to-a-roth-ira/ Social Security, Retirement Planning | NCPA Fri, 27 Aug 2010 16:18:36 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Michael http://retirementreform-blog.com/converting-a-traditional-ira-to-a-roth-ira/comment-page-1/#comment-303 Michael Sun, 09 Aug 2009 05:06:23 +0000 http://retirementreform-blog.com/?p=150#comment-303 The simple analogy is, "Would you rather pay taxes on your seed money or your harvest?" And a simple way to gauge your response is to the question, "Do you believe future tax rates are likely to be: Lower, The Same, or Higher?" Traditional Retirement Planning teaches us that we will be in a lower tax bracket in retirement, but many are finding that this is NOT the case. Those that choose to payoff their mortgages have 1) lost their mortgage interest deduction, 2) don't have dependents living with them anymore, and if they are retired are 3) not contributing to their IRA/401(k) any more. All the deductions they had in their "earning years" are now gone, and with costs of living going up, are finding themselves in as high (or higher) tax bracket than they have ever been in because they have no deductions to offset the higher amounts of money they need to withdraw from their taxable accounts. http://missedfortuneinsider.blogspot.com/2009/05/tax-tilt-big-lie.html The simple analogy is, “Would you rather pay taxes on your seed money or your harvest?” And a simple way to gauge your response is to the question, “Do you believe future tax rates are likely to be: Lower, The Same, or Higher?”

Traditional Retirement Planning teaches us that we will be in a lower tax bracket in retirement, but many are finding that this is NOT the case.

Those that choose to payoff their mortgages have 1) lost their mortgage interest deduction, 2) don’t have dependents living with them anymore, and if they are retired are 3) not contributing to their IRA/401(k) any more.

All the deductions they had in their “earning years” are now gone, and with costs of living going up, are finding themselves in as high (or higher) tax bracket than they have ever been in because they have no deductions to offset the higher amounts of money they need to withdraw from their taxable accounts.

http://missedfortuneinsider.blogspot.com/2009/05/tax-tilt-big-lie.html

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