Brook2
Recycles dryer sheets
Are there any advantages for my converting a Sep-IRA into a Roth (based on following characteristics)?
I'm trying to decide if it's even worth using my brain cells to pursue it.
Situation:
-I am over 60
-I live in a very high taxed state
-I don't have earned income (job)
-I live off LT Gains cashed out yearly about $40,000 (no fed taxes, but high state taxes)
Converting Ira into Roth...
Pros:
When I need to spend my Roth, it is free from state taxes (and fed)
Cons:
I would lose my 0% Federal tax perk for living on my long term capital gains (because I would have to start paying for "earned" income taxes to convert it).
--
Confession: You can probably accuse me of looking into this just because I'm sick of paying high state taxes. Between state, property, county, city and sales taxes, I see little in return. I just got billed $1,600 for an unasked-for sidewalk repair in front of my house. To me, that also a tax. (Where does all the tax money go?)
I'm trying to decide if it's even worth using my brain cells to pursue it.
Situation:
-I am over 60
-I live in a very high taxed state
-I don't have earned income (job)
-I live off LT Gains cashed out yearly about $40,000 (no fed taxes, but high state taxes)
Converting Ira into Roth...
Pros:
When I need to spend my Roth, it is free from state taxes (and fed)
Cons:
I would lose my 0% Federal tax perk for living on my long term capital gains (because I would have to start paying for "earned" income taxes to convert it).
--
Confession: You can probably accuse me of looking into this just because I'm sick of paying high state taxes. Between state, property, county, city and sales taxes, I see little in return. I just got billed $1,600 for an unasked-for sidewalk repair in front of my house. To me, that also a tax. (Where does all the tax money go?)