FiveDriver
Full time employment: Posting here.
I spent Sunday searching for a Calculator that would estimate the Tax Bite for incremental Roth Conversions. I discovered that the interweb was sorely lacking in exactly what I was looking for.
I would just like to explore the increase in Income Tax for a range of conversions from my IRA into my existing Roth --
How much extra Tax owed now, to move money into a long-term Tax Free situation.
Fidelity had something that was overkill for what I was seeking.
The NewRetirement site had a tool that produced less than helpful results.
The Schwab site was basically useless for my purposes.....c'mon Charlie !!
Essentially, we must define Filing Status (MFJ).
Define the upper bounds of each Tax Bracket, ex. $190K for 22%.
Take prior year's Tax Return Adjusted Gross Income -- Line 11.
Leave enough headroom to account for increases in SS, or other Income.
Increase AGI incrementally by the amount we want to convert into Roth.
Compare the resulting Total Tax to the prior year's Total Tax. Simple, yes ??
All the online calcs I saw used Adjusted Gross Income (not MAGI, or some other derivative.
There may be some variance when including Taxable Social Security Benefits.
Is there anything else that needs to be factored in to this exercise ?
I would just like to explore the increase in Income Tax for a range of conversions from my IRA into my existing Roth --
How much extra Tax owed now, to move money into a long-term Tax Free situation.
Fidelity had something that was overkill for what I was seeking.
The NewRetirement site had a tool that produced less than helpful results.
The Schwab site was basically useless for my purposes.....c'mon Charlie !!
Essentially, we must define Filing Status (MFJ).
Define the upper bounds of each Tax Bracket, ex. $190K for 22%.
Take prior year's Tax Return Adjusted Gross Income -- Line 11.
Leave enough headroom to account for increases in SS, or other Income.
Increase AGI incrementally by the amount we want to convert into Roth.
Compare the resulting Total Tax to the prior year's Total Tax. Simple, yes ??
All the online calcs I saw used Adjusted Gross Income (not MAGI, or some other derivative.
There may be some variance when including Taxable Social Security Benefits.
Is there anything else that needs to be factored in to this exercise ?