corn18
Thinks s/he gets paid by the post
- Joined
- Aug 30, 2015
- Messages
- 1,890
2022 is my first full year of retirement (age 56). Looking at what to do for income taxes, tax gain harvesting, Roth conversion and Roth contribution.
Income:
$32,000 RSUs vest (These are leftover that I was allowed to keep as part of severance package. This should be W-2 income and gets paid on 30 Dec 2022)
$49,000 military pension (1099-R, taxable)
$11,000 investment income (mostly qual/non qual dividends)
$4,800 deferred comp
$96,800 Total income
-$25,900 Std Deduction
$70,900 taxable income (some of this will be qualified dividends)
I will do a Roth contribution for my me and my wife in early 2023. I need to make sure the RSUs are W-2 income. I have asked, they said yes, but I can wait until I have the W-2 in early 2023 and then do the Roth contributions.
With the headroom to $83,350 for 0% LTCG tax, I was going to tax gain harvest in my taxable account. I don't need to withdraw anything (have enough cash for 2022). I could do Roth conversions up to the top of the 12% bracket, but I don't really need to. All my tax deferred is in my 401k which has a great stable value fund and allows rule of 55 withdrawals at any time for any amount.
Looking past 2022, I will not have the RSU income, so I will have about $35k of headroom each year to continue tax gain harvesting and/or 401k conversions. Probably do a mix.
Does all this seem reasonable?
Income:
$32,000 RSUs vest (These are leftover that I was allowed to keep as part of severance package. This should be W-2 income and gets paid on 30 Dec 2022)
$49,000 military pension (1099-R, taxable)
$11,000 investment income (mostly qual/non qual dividends)
$4,800 deferred comp
$96,800 Total income
-$25,900 Std Deduction
$70,900 taxable income (some of this will be qualified dividends)
I will do a Roth contribution for my me and my wife in early 2023. I need to make sure the RSUs are W-2 income. I have asked, they said yes, but I can wait until I have the W-2 in early 2023 and then do the Roth contributions.
With the headroom to $83,350 for 0% LTCG tax, I was going to tax gain harvest in my taxable account. I don't need to withdraw anything (have enough cash for 2022). I could do Roth conversions up to the top of the 12% bracket, but I don't really need to. All my tax deferred is in my 401k which has a great stable value fund and allows rule of 55 withdrawals at any time for any amount.
Looking past 2022, I will not have the RSU income, so I will have about $35k of headroom each year to continue tax gain harvesting and/or 401k conversions. Probably do a mix.
Does all this seem reasonable?
