- Joined
- Oct 13, 2010
- Messages
- 10,767
I'm certainly going to do a traditional to Roth conversion so that my income comes up to 250% of FPL (this example is with 3 dependents). The question comes with whether I should convert the next $30K (which would take me up closer to 400% of FPL). I would still be in the 15% bracket.
But converting the $30K would reduce the healthcare credit by about $2,900. So isn't converting this additional 30K costing me 25% (15% in taxes and another 10% in lost credits)?
I really don't know much about the tax torpedo with minimum distributions, but I'm confident that I'll be up against that.
Presuming the tax rates stay the same (yeah, big 'if'), does it make sense to hold-off on converting the extra $30K in order to get the bird in the hand tax credit?
But converting the $30K would reduce the healthcare credit by about $2,900. So isn't converting this additional 30K costing me 25% (15% in taxes and another 10% in lost credits)?
I really don't know much about the tax torpedo with minimum distributions, but I'm confident that I'll be up against that.
Presuming the tax rates stay the same (yeah, big 'if'), does it make sense to hold-off on converting the extra $30K in order to get the bird in the hand tax credit?