Ask An Expert
Q: I have income of $30,000 for 2019, and I’m thinking of converting my IRA to a Roth IRA over the next five years. I want to pay the taxes from a taxable account. How do I do this? — S.A., Orlando A: It sounds like you’ve planned well for this and considered all aspects. Call your IRA custodian, set up a Roth IRA, fill out the conversion form each year and be prepared to pay your marginal tax rate (12 percent in your case) based on your income of the amount converted in taxes in April. — Dennis Nolte Q: I turned 70½ this year, how much do I need to take out of my IRA? — L.S., Orlando A: The amount is dependent on the Dec. 31st balance of the IRA the year prior to turning 70½ and the Required Minimum Distribution factor provided by the IRS based on your age at the end of the year in which you turn 70½. This distribution for the first year is about 3.7% of your IRA balance. Your IRA custodian may also provide this number to you if they held your account as of Dec. 31st. — Tommy Lucas
Have a question? Email askanexpert@fpafla.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by Certified Financial Planners from the Financial Planning Association of Central Florida. Answers are for educational purposes only; you should also consult a financial professional. Questions and answers may be edited for space considerations.