Quote:
Originally Posted by F150
Take a look at doing Roth Conversion out of 401K's
Good chance if Dems go in, Cap Gain taxes will go up, maybe to regular tax levels...Convert now, pay the cap gain now and use the roths for your forced distribution
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That's good advice although the Cap Gains rate has nothing to do with Roth conversions. You will pay tax on the conversion as "ordinary income". So the common tactic is to convert just enough of your traditional 401k or IRA to a Roth without jacking you up to the next tax bracket.
Now that all being said, future income tax rates will definitely be higher if the Dems take control. So the game is to convert now at a lower tax rate or chance paying most likely higher taxes later.