✉news BusinessPersonal Finance first seen 12 d ago, last 11 d ago, peak #11

Delaying a Roth Conversion After 60 Costs Thousands in Extra Tax

Original: Every Year a 62-Year-Old Skips a Roth Conversion Costs About $3,000 in Extra Tax Later. On the Average 60-to-64-Year-Old's $246,500 401(k), the Window Is 11 Years Long

A new analysis estimates that a 62-year-old who puts off converting 401(k) savings to a Roth account pays roughly $3,000 in additional tax for each year of delay. With the average American aged 60 to 64 holding about $246,500 in a 401(k), the practical conversion window before required minimum distributions begin is around 11 years.

Why now: Retirees approaching required minimum distributions are weighing whether to convert now or risk higher future taxes.

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Evidence

• Every Year a 62-Year-Old Skips a Roth Conversion Costs About $3,000 in Extra Tax Later. On the Average 60-to-64-Year-Old's $246,500 401(k), the Window Is 11 Years Long · 24/7 Wall St.

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