My conversions are targeted to keep my taxable income about even with what I expect after RMD’s and SS kick in. Should put me in about the same tax bracket unless tax laws change. Since I can’t predict that, this is the best I can do. Yes, this puts me in IRMMA territory now but that’s OK, I’ll be there later as well. It just means I’m fortunate enough to have started early retirement with a nice tIRA balance and a lump sum pension rollover.For those processing partial Roth conversions against larger 401(k) balances, in order to really make a dent in the balance, you may need to convert beyond the IRMMA limit and pay slightly higher PART B Medicare premium. Is anyone doing that? Question 2, how many have some portion of the conversion taxes due paid from the Roth principal?
To maximize the benefit, I pay all taxes out of my taxable account. Based on my calculations and what I’ve read, this is a key assumption in all the conversion advice given.
Statistics: Posted by BigJohn — Sat Aug 24, 2024 9:50 pm — Replies 62 — Views 4682