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Old 02-19-2019, 09:22 PM
 
582 posts, read 265,222 times
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Quote:
Originally Posted by ChessieMom View Post
How is deferred going to be treated differently than taxable?

Not the OP but I assumed they meant bc no RMD from taxable.
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Old 02-19-2019, 10:08 PM
 
24,845 posts, read 31,960,649 times
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Quote:
Originally Posted by ihatetodust View Post
Not the OP but I assumed they meant bc no RMD from taxable.
Ah.
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Old 02-20-2019, 03:01 AM
 
521 posts, read 156,305 times
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Quote:
Originally Posted by ChessieMom View Post
Roth conversions - how do you guys pay for them? Itís a much easier thing to do when you already have a large amount of cash available.
I used our tax savings under the TCJA to pay for our Roth conversion. I just figured out the equivalent amount we could convert based on that. (I'm self-employed and keep track of our tax obligation throughout the year).
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Old 02-20-2019, 11:17 PM
 
24,845 posts, read 31,960,649 times
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Quote:
Originally Posted by Lucy_C View Post
I used our tax savings under the TCJA to pay for our Roth conversion. I just figured out the equivalent amount we could convert based on that. (I'm self-employed and keep track of our tax obligation throughout the year).
Nice that you had that much in savings. Right now, for me, the upfront tax break is more important. I'm at the top of a bracket now, and if I were to put the $$ into a Roth instead of deferring, I'd be in a higher bracket that I'll never reach in retirement.
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Old 02-21-2019, 03:34 AM
 
521 posts, read 156,305 times
Reputation: 1141
Quote:
Originally Posted by ChessieMom View Post
Nice that you had that much in savings. Right now, for me, the upfront tax break is more important. I'm at the top of a bracket now, and if I were to put the $$ into a Roth instead of deferring, I'd be in a higher bracket that I'll never reach in retirement.
Oh that's completely fair! You're making the right choice - we are solidly in th 12% tax bracket, so converting up to the top of the bracket makes some sense for us.

It's all dependent upon a number of factors, and those factors are different for almost everyone!
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Old 02-21-2019, 06:10 AM
 
4 posts, read 187 times
Reputation: 10
How I can find out my Roth?
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Old 02-22-2019, 06:19 AM
 
Location: Austin, Texas
1,493 posts, read 864,349 times
Reputation: 3126
Quote:
Originally Posted by mathjak107 View Post
i messed up by having to much in deferred and not enough in roths when i had the chance . it cost me big time in lost aca subsidies and getting ss taxed . it will cost us again in 2 years when my wife starts rmd's .. while we will reinvest what she takes out , all gains are taxed from that point on as well as all interest unlike a roth .

tax brackets don't have to budge and the roth has clear advantages besides tax bracket .
I'm in the same boat. To keep ACA subsidies I have to keep income lower, and when I draw SS I will pay more taxes, than I would have if I had more Roth funds.

Doing it over I would definitely have gone heavier into Roths. If you follow the rules, the earnings are NEVER taxed. That's a heck of a benefit.
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Old Yesterday, 10:09 PM
 
Location: Thailand
5,475 posts, read 2,609,459 times
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Quote:
Originally Posted by unihills View Post
IIf you follow the rules, the earnings are NEVER taxed. That's a heck of a benefit.
Oh there are always a few around here that are ramping up for what they see as impending government seizure of 40ks, Roths, guns, gold, land, and classic John Holmes videos.
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Old Today, 07:59 AM
 
Location: Proxima Centauri
4,254 posts, read 1,779,668 times
Reputation: 4642
Quote:
Originally Posted by Tonyafd View Post
When you are seventy and one half the your mutual fund companies will give you a figure that you will need to withdraw each year from your taxable funds. What you want to do here is to see an accounting attorney who can advise you how to set that ratio so that taxes are minimized in the future.
Quote:
Originally Posted by mathjak107 View Post
not sure what you mean by set the ratio

The ratio of deferred income to Roth income.
The idea is to minimize taxes by projecting taxable income in retirement and find a point where the tax burden is minimized while the OP is still 53 years old. While there are always unknown variables 20 years out, some sort of optimization calculation should still be possible.
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