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Financial Planning / Tax Strategies
|Subject: Re: Should I Convert?||Date: 6/19/2011 3:08 PM|
|Author: TMFPMarti||Number: 113536 of 121061|
I am teaching in Korea, and I am tax exempt for up to about $91,000. How much I make depends largely on the exchange rate, but I'd guess around $30,000 with the current rate. I have no idea how this would affect my tax rate on a conversion though.
You really must stop scaring me. I could be forced to take to drink.
Something didn't sound right here, but before I panicked I went back and looked to see if you were involved in the discussion we had about making IRA contributions while excluding foreign earned income. You were, and just to reassure me, you have about $30,000 of income in excess of the foreign earned income exclusion, right?
Line 3 of the tax calculation worksheet you use to figure your tax gives you the taxable income that you'd add the conversion amount to. You can then check that amount against the tax rate schedules to find your marginal rate. It sounds to me like you'd be in the 28% bracket.
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