05-20-2014, 10:11 AM
Interesting question Jimbo but not one that I can definitively answer. It all depends on your current income and tax bracket, your expected income and tax bracket at retirement, what funds you have available to pay the taxes due on the conversion, etc.
If you are in the 39.6% tax bracket it would take a lot of growth over the years to be able to make up the difference and make it worthwhile, especially if you are planning on paring back lifestyle at retirement and may be in the 15% or 25% bracket then. Also factoring in your wife's concerns about the uncertainty of rules on the ROTH by then. Personally, I don't think there will be any significant changes to the rules, but we are talking about politicians here.
I've always lived by the motto "Happy Wife = Happy Life", and if you can't convince her it's a good idea, it may not be worth the few bucks you might possibly save 20 years down the road for her to be unhappy about it.
If you are in the 39.6% tax bracket it would take a lot of growth over the years to be able to make up the difference and make it worthwhile, especially if you are planning on paring back lifestyle at retirement and may be in the 15% or 25% bracket then. Also factoring in your wife's concerns about the uncertainty of rules on the ROTH by then. Personally, I don't think there will be any significant changes to the rules, but we are talking about politicians here.
I've always lived by the motto "Happy Wife = Happy Life", and if you can't convince her it's a good idea, it may not be worth the few bucks you might possibly save 20 years down the road for her to be unhappy about it.