How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13136
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I am 75 years old and have lived in Thailand for 14 years.

This answer was rated:

I am 75 years old and have lived in Thailand for 14 years. Between my Social Security and private pension, my income is about $3300/month. I have a TSA worth about $240,000 from teaching in the state of Wisconsin on which my MRD is usually about $9000. I can live well on $1000/month so I do NOT need additional income. I contribute to two 529 college plans for my grandsons and plan on doing the same for my two granddaughters in a few more years. I am considering converting my TSA to a Roth because I do not want any MRD but I realize the tax burden will be significant. Is there any method of doing income averaging over a period of five years or so to minimize the tax burden? I will appreciate any advice you can give me! I will most likely be cursed(?) with old age as my mother died at age 107. I workout at a gym daily and am in excellent health. Thanks, XXXXX XXXXX

Robin D :

Hello and thank you for using Just Answer,
Unfortunately, a distribution from your TSA plan would not qualify as a lump-sum distribution. This means you cannot use the special 10-year tax option to calculate the taxable portion of a distribution, which is what your TSA conversion would imply. Had you decided to do this in 2010, you would have been allowed to spread the tax over 2 years rather than just the conversion year.
I wish I could tell yo that you would not be taxed on the earnings all in the conversion year but the rules would not allow that.

Robin D. and other Tax Specialists are ready to help you