As I notice that two of my clients turn 70 today, I am reminded of two planning opportunities that are worth mentioning. Each became more useful after the new tax bill went into effect on January 1st of this year. With strategies that aren’t particularly new, two changes in the tax code: the increase of the standard deduction, and the lowering of overall rates have opened new windows of opportunity.
Starting January 1, 2010, the rule that limited Roth conversions to taxpayers earning less than $100,000 went away. Effectively, anyone could then convert traditional IRAs to Roths. But, that change wasn’t very helpful because of tax brackets at that time. In 2010, from 100k to 137k of taxable