What is her tax bracket? And how does it compare to your brother and yours? If hers is lower relative to the heirs, the Roth conversions make a lot of sense. If her bracket is equal or higher, not so much. Tax will be paid at a lower rate and the heirs will get 10 years of tax free growth.
The mitigating factor is the cost of her care (if deductible). If it is deductible, it would make sense to use this deduction to offset her IRA withdrawals (as several other posts have already suggested and IRMMA my be a consideration in this).
In the end, given the uncertainties, the right decision will need to be some degree of SWAG. We don't know how long she will live and what her care needs/costs will actually be- she could be good with assisted living for most of her remaining years or could end up in a more expensive nursing home facility. Make the best decision you can based on what your know now and run with it. And be open to adjusting as life unfolds.
The mitigating factor is the cost of her care (if deductible). If it is deductible, it would make sense to use this deduction to offset her IRA withdrawals (as several other posts have already suggested and IRMMA my be a consideration in this).
In the end, given the uncertainties, the right decision will need to be some degree of SWAG. We don't know how long she will live and what her care needs/costs will actually be- she could be good with assisted living for most of her remaining years or could end up in a more expensive nursing home facility. Make the best decision you can based on what your know now and run with it. And be open to adjusting as life unfolds.
Statistics: Posted by IowaFarmBoy — Wed Aug 28, 2024 8:16 am
