Lisa99
Thinks s/he gets paid by the post
- Joined
- Aug 5, 2010
- Messages
- 1,440
I've been reading about Roth conversion, filling up the 15% bucket and modeling in TurboTax, but I'm still not 100% confident that I understand the steps.
For those who do this regularly could you look at my scenario and let me know if my conclusion is right (Using hypothetical numbers).
Scenario - budget is $85k/year (includes fixed and variable expenses)
Pension - $13.5k
Dividends and interest - ~$12.5k/year from after tax investments (taken as cash rather than reinvested)
Shortfall - $56k (Sell $56k in investments of which $18k is capital gains)
Top of 15% tax bracket in 2014 is $73,800.
Assume that I have no carryforward losses.
SS is more than a decade away.
Is this the right answer?
I think the pension is the only ordinary income in the scenario so I think I would be able to convert $60,300 of my tIRA.
If my conclusion isn't right could someone show me the steps involved to determine how much I could convert to Roth IRA without causing my capital gains to become taxable?
For those who do this regularly could you look at my scenario and let me know if my conclusion is right (Using hypothetical numbers).
Scenario - budget is $85k/year (includes fixed and variable expenses)
Pension - $13.5k
Dividends and interest - ~$12.5k/year from after tax investments (taken as cash rather than reinvested)
Shortfall - $56k (Sell $56k in investments of which $18k is capital gains)
Top of 15% tax bracket in 2014 is $73,800.
Assume that I have no carryforward losses.
SS is more than a decade away.
Is this the right answer?
I think the pension is the only ordinary income in the scenario so I think I would be able to convert $60,300 of my tIRA.
If my conclusion isn't right could someone show me the steps involved to determine how much I could convert to Roth IRA without causing my capital gains to become taxable?