For one thing, by paying the tax now, the estate has been significantly lowered by that amount. That tax will be paid anyway by someone. If the client pays, it's like paying a bill for the kids. It's like a gift. According to Slott, there's no reason you shouldn't be able to meet that limit.
People can stretch or shift income.
He believes retired people, especially, have more control over their annual income. Otherwise, income distributions from the IRA could put you over the AGI limit. Also, the fund begins to shrink from the withdrawals, leaving less for the estate. One final point to remember - the more the traditional IRA grows, the more tax you'll pay when you convert. Copyright 2000 Janet Bigham Bernstel.