The following considerations should be weighed before converting qualified monies to Roth IRAs. 1) You need to determine your adjusted gross income (AGI) and, for some, your modified adjusted gross income (MAGI) after applying all your exemptions, deductions and tax credits. Once you determine your AGI or MAGI, you need to figure your top bracket of taxable earnings and investment income. As an example: A married couple has calculated that their AGI is $76,500, at the lower end of the 25% tax bracket. They should determine if they have any further deductions that can lower their AGI below the $75,900 the top of the 15% tax bracket. After reviewing every legal deduction the couple’s tax accountant found additional write offs that lowered their AGI down to 72,500. This gave them some “head room” in the 15% tax bracket to convert $4,000 a year from their traditional IRA to a Roth IRA at 15% tax. It’s estimated that it would take them about 12 years to convert their traditional IRA to a Roth IRA. But that assumes no increase in income or tax law changes. But the conversion is warranted. It makes math sense. But if they were unable to find   Read more…