We are both retired, ages 61 & 62. We started regular IRA's in the
80's. Then we started Roths when they came into being. We have much more $$ in regular IRA's, and since I have 2 regular IRA's myself, I'd like to roll one IRA (15K with Janus) over into my Roth (Vanguard). Our regular IRA's are quite large and when we have to start taking out RMD's, it is going to increase our income considerably--so I'd like to postpone some of this by moving into the Roth. Questions: 1) Is this a good idea to begin with? I have no idea what our income will be from year to year, but with pensions, hubby's SS, cap gains & interest--$60,000 is a guess for 08. I can't see this getting lower in future yrs, but higher. 2) Do we have to pay income tax on the entire 15K once we roll it over, or just on the interest/dividends earned? 3) Do we pay the taxes out of the rollover monies or can we pay it out of other income so our rollover doesn't get decreased? 4) Do the taxes automatically get billed to us or do we contact our tax man for the details about sending pre-payments into the feds? 5) Does someone have a suggestion of a Vanguard fund that is relatively worry-free with moderate growth that I can pop this entire 15K into? The rest of my Vanguard Roth is in Asset Assocation Fund and Emerging Markets Fund. 6) Is it a good idea to move more money into Roths in future years, being that the $60,000 will probably be the lowest income we will make per yr. SandyBeth- posted
16 years ago