teejayevans
Thinks s/he gets paid by the post
- Joined
- Sep 7, 2006
- Messages
- 1,691
Before OC: If you are in 15% bracket, and you do a Roth conversion, you pay 15% assuming you stay in the 15% bracket.
Now that OC is law, using an online subsidy calculator: You do the same conversion, still will pay 15%, PLUS the extra income will result in more expensive insurance, because a you will get a far less tax credit. For me, an extra $19K of a Roth conversion results in $5650 in extra taxes, a 30% tax.
Those doing Roth conversions may want to run their own numbers before doing conversions in 2014.
TJ
Now that OC is law, using an online subsidy calculator: You do the same conversion, still will pay 15%, PLUS the extra income will result in more expensive insurance, because a you will get a far less tax credit. For me, an extra $19K of a Roth conversion results in $5650 in extra taxes, a 30% tax.
Those doing Roth conversions may want to run their own numbers before doing conversions in 2014.
TJ