Hi all,
This will be our first year to do taxes as a retired couple. One thing I want to get done is making Roth conversions up to the 22% bracket.
It looks like I will have a lot of room to do that at least this year.
The only income I have come up with is about $19k, mostly Vanguard fund
interest and dividends. My expenses were more, I started the year with a lump sum of cash, so didn't need to make any withdrawals to pay expenses.
I see the 12% bracket goes to $78,950, and I'm pretty sure that is after the $24,000 standard deduction.
So, my thinking is, I can Roth convert, $78,950 + $24,000 = $102,950 then $102,959 - $19,000 = $83,950. Meaning I can convert $83,950 and stay in the 12% bracket. Then I would have a tax liability of $9474.
Am I one the right track? Any caveats I need to be aware of?
I haven't been on this group long, Is the general consensus here that Roth conversion in a low tax bracket are a good idea?
This will be our first year to do taxes as a retired couple. One thing I want to get done is making Roth conversions up to the 22% bracket.
It looks like I will have a lot of room to do that at least this year.
The only income I have come up with is about $19k, mostly Vanguard fund
interest and dividends. My expenses were more, I started the year with a lump sum of cash, so didn't need to make any withdrawals to pay expenses.
I see the 12% bracket goes to $78,950, and I'm pretty sure that is after the $24,000 standard deduction.
So, my thinking is, I can Roth convert, $78,950 + $24,000 = $102,950 then $102,959 - $19,000 = $83,950. Meaning I can convert $83,950 and stay in the 12% bracket. Then I would have a tax liability of $9474.
Am I one the right track? Any caveats I need to be aware of?
I haven't been on this group long, Is the general consensus here that Roth conversion in a low tax bracket are a good idea?