The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: IRA to Roth IRA Conversion Date:  7/29/2013  12:37 AM
Author:  ptheland Number:  72706 of 78166

Well, no. The LTCG and dividends are included in the taxable income, but the rate for them depends on your tax bracket.

Sorry, Ray, but I've gotta pull rank on you on this one. I'm a tax professional and I KNOW how this works.

Play with it in TurboTax (for 2012). Enter $10,000 of dividends and other income to get taxable income of $70,699 (married-joint). Then add $2 more income to bump the T.I to $70,701. The tax jumps a whole lot, because the entire $10K of dividends is now taxed.

If so, there's something wrong with Turbo Tax. Given your numbers, the tax itself should go up by 15 cents on one dollar and 25 cents on t