explanade
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- Joined
- May 10, 2008
- Messages
- 7,456
My current tIRA and Roth IRA balances are fairly modest, mid 5-figures combined.
My 401k is about 10 times as much.
I just did a Vanguard Financial Plan and the planner suggested that I may want to convert my tIRA to Roth IRA before I FIRE and roll over my 401k into my tIRA.
Because once I do that, the tax basis changes and any conversions would incur a lot of taxes.
Currently my tIRA has modest gains.
However, I see in a lot of threads here that people are doing it after FIRE, so that they can engineer their income, to stay below to get ACA subsidies or other reasons (minimize taxes in general?).
My AGI is being padded almost by 2/3 over my salary due to cap gains distributions and dividends from my taxable accounts (which are like 85% of my retirement assets).
Still make sense to do it?
Single, no children so I think the subsidy limit for ACA would be like $46k or something like that. I plan to have a larger annual budget, though spending in 2012 was actually about $49k, without paying for health insurance.
My 401k is about 10 times as much.
I just did a Vanguard Financial Plan and the planner suggested that I may want to convert my tIRA to Roth IRA before I FIRE and roll over my 401k into my tIRA.
Because once I do that, the tax basis changes and any conversions would incur a lot of taxes.
Currently my tIRA has modest gains.
However, I see in a lot of threads here that people are doing it after FIRE, so that they can engineer their income, to stay below to get ACA subsidies or other reasons (minimize taxes in general?).
My AGI is being padded almost by 2/3 over my salary due to cap gains distributions and dividends from my taxable accounts (which are like 85% of my retirement assets).
Still make sense to do it?
Single, no children so I think the subsidy limit for ACA would be like $46k or something like that. I plan to have a larger annual budget, though spending in 2012 was actually about $49k, without paying for health insurance.