Roth query: Over 70, Conversion OK? Cap gains losses offset OK?

Ok? It's fantastic!! Yes, I need to get out more, but I will first tell you that I believe that Roth's value while working is slightly exaggerated. Your scenario above is ideal. I have an 80+ yr old woman who is in the 15% bracket. Each year we convert just enough to 'top off' that bracket so the next hundred dollars would have been taxed at 25%.

No, the conversion must take place after you calculate the RMD. Our RMD is based on 12/31/07 year end balance. We can do the Roth conversion any time during the year, but that RMD is fixed.

Yes - you can convert stock, the broker will report that value based on the day of conversion. There is no wash sale selling in one IRA and buying in another, anyway.

This strategy helps reduce the ever increasing RMDs as the converted amount is not in the account at year end. Reduces taxes by letting you use my 'top off' strategy. And saves the kids/beneficiaries a bucketload of money. Please, please confirm that TP has beneficiaries listed on the IRA account(s). IRAs should have their beneficiaries listed for proper transfer, a will is not enough. This is one of the top planning mistakes I see out there. See

Forgive me, all, in my enthusiasm, I failed to mention that for conversion in 2008 or 2009 Modified Adjusted Gross income must be less than $100K. So for a really large IRA, the RMD plus other income may put MAGI over $100K. In 2010 this rule is eliminated. Joe

If Obama is elected, there's a good chance the 2010 rule will be the same as 2009.

Staying away from any show of political bias, I still find this statement odd. The ability to deposit to a Roth is the ability to avoid taxes on the funds deposited indefinitely. But a conversion is revenue to the government now. And especially since a single with $100 MAGI is in the 28% bracket (Joint is 25%), the 2010 rule is not a handout but a revenue raiser. A voluntary one at that.

But to your point, any answers here are based on the current tax code and those laws that are in place for future years, which of course, are subject to change. Joe

Yes. The RMD cannot be converted, but any to all of the remaining balance can be converted as long as the taxpayer meets the income and filing status restrictions. Note that neither income from the conversion nor the RMD counts against the income limit. See Chapter 2 of Publication 590.

No

Yes.