Finally FI
Dryer sheet aficionado
- Joined
- Nov 12, 2022
- Messages
- 43
I’d like to make my 2024 HSA contribution before year-end. I also want to complete an in-plan $39k Roth conversion (in my 401k) to bring our AGI up to 60k (the estimate we used for ACA).
I want to make sure I understand my options correctly.
Option 1
If so, it seems like option 1 is better, as that moves additional money into Roth. Does that sound right?
I want to make sure I understand my options correctly.
Option 1
- Pull $9300 after-tax money from brokerage account.
- Contribute $9300 to the HSA
- Increase my planned $39k Roth conversion to $48,300 because my AGI will be reduced by the $9300 HSA contribution when I do taxes
- Complete a $9300 withdrawal from my 401k, netting me ~$7300 after taxes (the brokerage where the 401k resides says they pull taxes on all withdrawals)
- Pull ~$2000 after-tax money from brokerage account
- Contribute $9300 to the HSA
- Complete the planned $39k Roth conversion
If so, it seems like option 1 is better, as that moves additional money into Roth. Does that sound right?