Ready-4-ER-at-14
Full time employment: Posting here.
Hi, we are getting the stage of life where the last of the ira conversions are to be done and there are no new ira work related money contributions happening.
For a few years we were eligible to make ira contributions but not deduct them for tax purposes. I believe this is called unqualified ira money since it did not qualify for a tax deduction and it is the cost basis of the ira.
Not the exact amounts but lets say for ease of calculation that these post tax contributions were 1% of the total money. After all the other prior distributions where 99% of the distributions were taxed say there is 200k left and 2k of this is previously taxed money.
I believe that Qualified long term annuity contracts QLAC require qualified money. Could i get 198k of QLACs and just distribute the other 2k to either a Roth or take the cash tax free?
I'm going to talk to some annuity people after the holidays but don't understand why having some already taxed money in any account could poison the entire amount from a choice. It would seem at worse i was paying tax on the same money twice on a relatively few dollars percentage wise.
Anyhow it is the holiday season so don't spend too much effort on an answer unless you just like understanding this stuff as much as it seems i do.
Happy holidays and merry Christmas to all.
For a few years we were eligible to make ira contributions but not deduct them for tax purposes. I believe this is called unqualified ira money since it did not qualify for a tax deduction and it is the cost basis of the ira.
Not the exact amounts but lets say for ease of calculation that these post tax contributions were 1% of the total money. After all the other prior distributions where 99% of the distributions were taxed say there is 200k left and 2k of this is previously taxed money.
I believe that Qualified long term annuity contracts QLAC require qualified money. Could i get 198k of QLACs and just distribute the other 2k to either a Roth or take the cash tax free?
I'm going to talk to some annuity people after the holidays but don't understand why having some already taxed money in any account could poison the entire amount from a choice. It would seem at worse i was paying tax on the same money twice on a relatively few dollars percentage wise.
Anyhow it is the holiday season so don't spend too much effort on an answer unless you just like understanding this stuff as much as it seems i do.
Happy holidays and merry Christmas to all.
