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Just submitted my TIRA to Roth conversion
12-09-2009, 02:53 PM
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#1
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Recycles dryer sheets
Join Date: Oct 2009
Posts: 67
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Just submitted my TIRA to Roth conversion
I always get nervous when I execute changes that I feel a bit unsure about--but I just submitted the order a minute ago. After looking at my MAGI for the year, it looks like it will be under $100k and my taxable income will be $55,000. Since I had a bit of room in the 15% bracket (up to $67,900), I figured I'd convert ~$13,00 from my Trad IRA to my Roth to take advantage of only paying 15% on the conversion.
I hope this doesn't turn bad on me somehow!
I'm hoping to have some room in the 15% bracket next year, too. I figure anything I can convert at 15% will be worth it.
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12-09-2009, 03:19 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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I'd say that for a lot of folks who don't think they'll spend much time in a 15% bracket, performing a Roth conversion with the unused remainder of that bracket is probably a good idea. I doubt many people will only be taxed at 15% years and decades into the future.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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12-09-2009, 03:27 PM
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#3
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Recycles dryer sheets
Join Date: Oct 2009
Posts: 67
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ziggy--My thoughts exactly; I really doubt I'll ever have the opportunity to pay only 15% tax on that money ever again. I was a touch generous in my conversion because I figured paying a few dollars in the 25% bracket was worth it for maximizing the 15% bracket. I hope it got it really close, but it's always so hard to determine exactly.
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12-09-2009, 05:18 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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Quote:
Originally Posted by sirion
I always get nervous when I execute changes that I feel a bit unsure about--but I just submitted the order a minute ago. After looking at my MAGI for the year, it looks like it will be under $100k and my taxable income will be $55,000. Since I had a bit of room in the 15% bracket (up to $67,900), I figured I'd convert ~$13,00 from my Trad IRA to my Roth to take advantage of only paying 15% on the conversion.
I hope this doesn't turn bad on me somehow!
I'm hoping to have some room in the 15% bracket next year, too. I figure anything I can convert at 15% will be worth it.
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to bad you think you may not be in the 15% bracket next year. next year you can convert , pay no taxes in 2010.. declare 1/2 in 2011 and 1/2 in 2012.... now thats a deal ill take advantage of in januaray
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12-09-2009, 06:36 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
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Look at it this way. Five years from now, assuming you'll have both TRAD IRA and ROTH, if taxes are high, withdraw from the ROTH, if taxes are affordable bleed the TRAD IRA. Its diversivication.
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In a panamax down by the river.
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