UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: Tiggertoo One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75824  
Subject: Re: Roth conversion in 98 or 99 Date: 3/13/1998 9:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
>>>Help. Do I convert in 98, which will be a low agi,but next three years
will be big agi's or do I wait until
99 and plan on a low agi (15%) ? Is the tax on the converted IRA amount
found by multiplying 15 times the amount for 99? and paying the tax all
in 99. It may be better not to use the 4 year spread.<<<

I recommend that you spend the $30 to get some tax software to look at the options. The 1997 year Turbo Tax software has the ability to do projections. There are many factors that affect the effective tax rate, and you really need some good software to look at the various factors. By converting, it may change the amout you can claim in dependents, as well as itemized deductions. Turbo Tax has a good projection module. I don't know about the Kipplinger product.

If you don't want to do the work your self, contact a CPA that has some software, and pay a little to get the peace of mind of knowing all the options and each effect on current as well as future taxes.

Lots of Luck.

TTFN...TiggerToo
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement