I wonder if someone could check my assumptions.
1. I am 59.5, in the new 12% tax bracket; and have $975K in TIRA money. Of this amount, $32.5 were non-deductible contributions. I did my first 10K Roth Conversion this month (April). When I did the calculation as to how much of the 10K was taxable, I used the $975K as my total IRA balance. My question is, if my TIRA balance grows by the end of the year, is that the amount the IRS will use to determine how much tax I owe on that conversion?
2. Do I have this correct: I will pay 12% income tax on my taxable acct dividends and interest; and Roth conversion; and I will pay 0% on capital gains distributions; including any gains from investments I sell (while staying in 12% tax bracket)?
3. I sent in a quarterly IRS tax payment equal to the total amount of my Roth conversion tax I owed, plus 12% of investment dividends, interest, and capital gains to date. I do realize I could have sent in 1/4 of that amount. I also sent in money to my State which charges a 7.5% state and local tax rate. Should I have not included the capital gains I received?
Thanks!
1. I am 59.5, in the new 12% tax bracket; and have $975K in TIRA money. Of this amount, $32.5 were non-deductible contributions. I did my first 10K Roth Conversion this month (April). When I did the calculation as to how much of the 10K was taxable, I used the $975K as my total IRA balance. My question is, if my TIRA balance grows by the end of the year, is that the amount the IRS will use to determine how much tax I owe on that conversion?
2. Do I have this correct: I will pay 12% income tax on my taxable acct dividends and interest; and Roth conversion; and I will pay 0% on capital gains distributions; including any gains from investments I sell (while staying in 12% tax bracket)?
3. I sent in a quarterly IRS tax payment equal to the total amount of my Roth conversion tax I owed, plus 12% of investment dividends, interest, and capital gains to date. I do realize I could have sent in 1/4 of that amount. I also sent in money to my State which charges a 7.5% state and local tax rate. Should I have not included the capital gains I received?
Thanks!
Last edited: