UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: tonyco Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75637  
Subject: Roth IRA's Date: 2/19/2000 3:07 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Ok, so I missed my chance to convert for 1999, I have a decent sized chunk of Traditional IRA change to convert, but dont want to exceed the $130,250, max for the 31% tax rate, what is the calculation so that I maximize my year 2000 conversion, without having to pay 36% on any of it?

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19316 of 75637
Subject: Re: Roth IRA's Date: 2/20/2000 11:10 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, tonyco, and welcome. You wrote:

<<Ok, so I missed my chance to convert for 1999, I have a decent sized chunk of Traditional IRA change to convert, but dont want to exceed the $130,250, max for the 31% tax rate, what is the calculation so that I maximize my year 2000 conversion, without having to pay 36% on any of it?>>

Determine the breakpoint for the 36% marginal rate for 2000, subtract your projected taxable income (adjusted gross income less exemptions and deductions) from the breakpoint, and the difference is the amount you can convert to remain within the 31% bracket.

Regards..Pixy

Print the post Back To Top
Author: mdorsey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19371 of 75637
Subject: Re: Roth IRA's Date: 2/21/2000 4:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
What's the rush to convert? Somewhere down the road you may be in a lower bracket. Why pay a tax till it's due? They may even lower all the brackets someday.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement