Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The extra amount applies to everyone. Say you've been enrolled with no spouse for 5 years. For 2018, SSA will look at your 2016 return, the most recent on file. If the MAGI was above 85,000, you'll pay more. For married filing jointly, double the income amounts shown in the table.
I was told I could convert my tiny pension into a Roth and as long as I only withdrew (relatively) small amounts at a time, that's what I would be taxed on.
I was told I could convert my tiny pension into a Roth and as long as I only withdrew (relatively) small amounts at a time, that's what I would be taxed on.
Be careful on the intentions and what that person gets out of the deal to convert a "tiny" pension. First look what you are giving up and ask them what they get in return for that conversion. Converting a pension might look like a good thing until you do the final math on it. Of course it would depend on the pension source then the conversion would give them the assumed risk. Maybe it is a backdoor way of buying out? Hmmmmmm
Be careful on the intentions and what that person gets out of the deal to convert a "tiny" pension. First look what you are giving up and ask them what they get in return for that conversion. Converting a pension might look like a good thing until you do the final math on it. Of course it would depend on the pension source then the conversion would give them the assumed risk. Maybe it is a backdoor way of buying out? Hmmmmmm
Thanks for the heads up. I would be doing this myself, so not running the risk of someone else having a vested interest.
I was told I could convert my tiny pension into a Roth and as long as I only withdrew (relatively) small amounts at a time, that's what I would be taxed on.
This is backward. 1. You can't convert a pension. You can only convert a 401K, 403B etc. 2. Tax is due on conversion. You convert 50,000 worth, you pay 50,000 worth. 3. When you withdraw from a Roth, you owe no tax, even on investment gains.
The reasons to convert, or not, are complex and depend totally on one's personal circumstances.
Not sure where you're getting your info but I can definitely take my private pension and put it into a Roth IRA and I will be taxed on the amounts I withdraw, whether it's $1K or $10K.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
