This is a tough but important decision! Roth conversions can be a great tool, especially if you’re looking at higher tax brackets down the road. However, draining your emergency fund to pay the taxes out of pocket feels risky—life has a way of throwing curveballs, and having that cash cushion is crucial.
Withholding taxes from the conversion amount might be a better middle ground, even if it slightly reduces the long-term benefits. It keeps your emergency fund intact while still moving forward with the strategy.
As for the $6,000 quote, it seems a bit steep unless it includes comprehensive financial planning beyond just Roth conversions. You might want to shop around or ask your current advisor if they can provide a more tailored solution at a lower cost.
Ultimately, it’s about balancing risk and reward. If you’re unsure, a second opinion from another advisor could help clarify the best path forward.
Good luck, and congrats on nearing retirement—it’s such an exciting milestone!