For about the last eight years, I've used any remaining portion of my federal 15% tax bracket to convert T-IRAs to Roth IRAs, usually at about $20K per year. I have a basis in the T-IRA that I'm also whittling down.
But with the uncertainties in the tax code for 2013, I've been considering using the 15% bracket for taking some capital gains on a few stocks that I've held for a long time.
One stock is now at 34, my basis is around 3+. The other is at 72, my basis is about 12. I still like both stocks though the second may have more near term potential than the first (I'd sell and almost immediately buy back the second stock). If I go ahead and realize the cap gains now, it'd be subject to the 0% cap gains tax (up to my $20K wiggle room)
But I hate to let a year go by without doing Roth conversions. I just looked it up and I may be able to complete the conversions in next four to five years and I have 8 years to RMDs.
I'm inclined to max out realizing the cap gains for 2012 with a temporary hold on Roth conversions but wondering if any other factors or considerations I may have missed. Also have pension and wife and I each have 401k
But with the uncertainties in the tax code for 2013, I've been considering using the 15% bracket for taking some capital gains on a few stocks that I've held for a long time.
One stock is now at 34, my basis is around 3+. The other is at 72, my basis is about 12. I still like both stocks though the second may have more near term potential than the first (I'd sell and almost immediately buy back the second stock). If I go ahead and realize the cap gains now, it'd be subject to the 0% cap gains tax (up to my $20K wiggle room)
But I hate to let a year go by without doing Roth conversions. I just looked it up and I may be able to complete the conversions in next four to five years and I have 8 years to RMDs.
I'm inclined to max out realizing the cap gains for 2012 with a temporary hold on Roth conversions but wondering if any other factors or considerations I may have missed. Also have pension and wife and I each have 401k