F4mandolin
Full time employment: Posting here.
Something just occurred to me as I was out trying to kill dandelions today.
1. I was planning on moving over $30,000-35,000 of my TSP to a ROTH over the next couple of years and just pay the 15% tax now.
2. I got a letter yesterday from OPM wanting me to confirm how much I earned since my annuity would be reduced like Social Security if I make over $15,480.
3. My pension and the annuity itself doesn't seem to count.
If I convert that $30K+ over to a ROTH wouldn't that bump my earnings for the year up well over the limit and then I would start losing $1 of every $2 over that $15,480 limit.......which would mean I would lose half of my annuity. Do I have this right? In which case, moving the money to the ROTH might not be a smart thing to do.
1. I was planning on moving over $30,000-35,000 of my TSP to a ROTH over the next couple of years and just pay the 15% tax now.
2. I got a letter yesterday from OPM wanting me to confirm how much I earned since my annuity would be reduced like Social Security if I make over $15,480.
3. My pension and the annuity itself doesn't seem to count.
If I convert that $30K+ over to a ROTH wouldn't that bump my earnings for the year up well over the limit and then I would start losing $1 of every $2 over that $15,480 limit.......which would mean I would lose half of my annuity. Do I have this right? In which case, moving the money to the ROTH might not be a smart thing to do.