I wont turn 59-1/2 until June 2026. I would like to do a Roth conversion from my trad 401k (approx $1.5MM). My company doesn’t allow in-service conversions, so I plan to leave current employer in March 2025, so I can roll out to an IRA. I want to then do an Roth conversion all at once, take the tax hit all in same year (2025) to avoid Biden tax increase coming in 2026. Plan then is to fund the conversion tax bill by selling our house to a newly formed Roth LLC, using the sale proceeds to pay the tax bill (I’ve estimated around $484k), while still living in said house that our Roth LLC owns. Is this doable at all, and doable if under 59-1/2 years of age? I don’t see any distribution which would trigger 10% penalty. My biggest goal is to have all investment holdings tax free for retirement.
Fielded your question today on the Open Forum show recorded July 24. Should be posted in a couple of days. Thank you for the question! Mark and Mat