haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
In 2008 I became eligible to do a Roth Conversion, and I have started this process. All of it will have to be done at 25% or higher, and I plan to stop each year at the 25% bracket limit. (At least under current tax rules). My plan is to convert as much as I can, and still stay withing the 25% bracket. By taking few or no capital gains, and due to having a lot of tax advantaged partnership income, some years I should be able to convert quite a lot. I also will try to avoid pushing MAGI high enough to trip another gotcha- higher Medicare premiums. I take the standard deduction, so both these thresholds are very similar. My taxable portfolio is not the most tax efficient, as I do a form of position trading. I see the conversion as a means to transform TIRA to Roth funds, at the cost of some of my fully taxable portfolio, as I will pay the tax due from my taxable accounts. Had I been able, I would have done the conversion before being so close to my RMD begining, but that was not available to me.
I will still have a good sized taxable account which I will use for buy and hold blue chips and MLPs, REITs,etc.. Then any (careful!) trading will be done in the Roth. I think it is possible to get paralysis by analysis, so I am going head long, feeling that although all my life I have hated to pay taxes early, in this case it will pay off.
What are others doing or considering?
Ha
I will still have a good sized taxable account which I will use for buy and hold blue chips and MLPs, REITs,etc.. Then any (careful!) trading will be done in the Roth. I think it is possible to get paralysis by analysis, so I am going head long, feeling that although all my life I have hated to pay taxes early, in this case it will pay off.
What are others doing or considering?
Ha