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Question for the Money Doctors

Question submitted on Apr 17, 2012.


At my age,72, what would it cost me to move my 401K,($400,000) into A Roth account? My gross last year after SS, Pension,RMD, etc.was $90,000 My adjusted was 65,000 as I have a Rental property in NC.


It would be tough to provide an exact tax liability since I do not know your entire tax situation, such as your amount of itemized deductions, marital status, etc.  I can tell you that the loss your rental property generates will be suspended for the year you convert, assuming you convert the entire $400k.  So, you could figure on your adjusted gross income being approximately $490k, all other things being equal.  It's very possible you would be paying tax in the top Federal bracket of 35% if you were to convert the entire balance in 2012.

There are many things to consider in addition to the items I mentioned above when deciding whether or not to convert to a Roth.  I would recommend finding a CPA/PFS in your area that could advise you on these complex decisions.  You can find an financial planner at

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