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"Smart" Roth Conversion Strategy using Index mutual funds or ETFs
This is an excerpt from Putnam on a variety of Roth Strategies. I am trying to employ the last option (#5)... anyone employing roth conversion strategies with their IRA accounts?
I use this scheme with my Vanguard IRA holdings. At the beginning of the year, I attempt to calculate how much I can afford to convert to a 'new' Roth. I move it, and then towards December and April I calculate if I went over or 'lost' money. If so, I recharacterize the needed amount back into the IRA. And then in April after taxes are finalized, I'll move the standalone 'new' Roth funds into my primary Roth account. Otherwise, the recharacterization amount needs to be calculated on the total Roth.
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