Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 11-21-2014, 03:25 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
Join Date: May 2008
Location: Following the nice weather
Posts: 5,797
Originally Posted by Gumby View Post
Easier said than done. The people who take advantage of these things have the incentive, the money and consequently the ear of congress critters to fight any such change.
If I had enough money I wouldn't mind a necklace of congressmen's ears.

"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-21-2014, 03:40 PM   #42
Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,294
Originally Posted by Fermion View Post
They might limit the mega backdoor Roth IRA thing some of us are now doing (shoveling $25,000 to $30,000 into a Roth tax free every year) but I doubt they would ever change the way the Roth works on distribution (tax free)......
Is that accurate? I thought you paid the tax up front at the time of the conversion.

...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 11-21-2014, 03:51 PM   #43
Thinks s/he gets paid by the post
Join Date: Sep 2012
Location: Seattle
Posts: 2,296
Originally Posted by jazz4cash View Post
Is that accurate? I thought you paid the tax up front at the time of the conversion.
You pay tax on any gains, but it is called an in plan conversion and you pretty much pay no tax (note the money goes into the 401k after tax so there was tax paid at some point).

Essentially it is like this:

Normal folks: $17,500 into 401K, $5500 into Roth

Lucky folks: $17,500 into 401K, $20,000 or more into 401K after tax -> immediately converted to Roth, $5500 into Roth.

Fermion is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Need help in doing IRS form to report qualified Roth IRA distribution swampwiz FIRE and Money 5 12-08-2010 01:42 PM
Non-deductible IRA and 8086 IRS form - arrgh!! wilkens21 Young Dreamers 14 01-10-2008 05:13 PM
Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA? thefed FIRE and Money 9 09-24-2007 04:52 PM
Ruh-roh: Roth IRA conversions-- the IRS way. Nords FIRE and Money 14 06-03-2006 06:36 PM
Aint this sweet...IRS to allow tax preparers to sell your return data cute fuzzy bunny Other topics 2 03-21-2006 06:21 PM


All times are GMT -6. The time now is 06:29 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.