Claud is an Associate Vice President for Executive Regional Sales Consulting and Data Analytics, earning taxable income
Question:
Claud is an Associate Vice President for Executive Regional Sales Consulting and Data Analytics, earning taxable income of $295,000. He participates in his company's 401(k) plan. He also has $415,000 in his traditional IRA account, and a Roth IRA account with a balance of $67,000. Claud is 55 and hopes to retire in about 5 years. His home mortgage is paid off, and he expects to have very low fixed expenses during retirement, so his withdrawals each year during retirement should be relatively low compared to his current salary. Assume that Congress will not raise or lower taxes and Claud files single.
a. Should Claud make contributions to his Roth IRA this year? Why or why not?
b. Should Claudi initiate a Roth conversion this year? Why or why not? If yes, how much do you recommend he convert?
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver