roth IRA conversion yes or no?

Since there's not a lot of time to do anything for 2006, I'd convert enough of the traditional to take you to the top of the 25% bracket now. Then sit down with a fee-based financial planner to figure out what to do in 2007 and out.

-- Phil Marti Clarksburg, MD

Your motives are good, but the results may be a wash. Currently, AGI over $74,200 is 28% money, and over $154,800 is 33%. My Roth conversion advice centers around 'topping off' the current bracket in an attempt to avoid getting forced into the next. An 80 yr old who has income (including RMD) of about $25,000. I advise her to convert just enough to get the taxable income right to $30,650 (the jump from 15% to

25%. Bottom line, she pays tax at 15% to avoid having ever increasing RMDs push her up to 25%. In your case, you look like you will be straddling the 28% bracket into retirement. If your heirs are in a lower bracket, they would be better off if you left the money pre tax. I missed one point - why will you not take the standard deduction next year? Besides the forced RMD at 70.5, is there some else happening you haven't spelled out? JOE JoeTaxpayer.com