The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Converting to Roth IRA Date:  6/4/2020  10:02 AM
Author:  RipeOldAge Number:  130724 of 131112

My wife and I are retired, collecting Social Security, and getting Medicare benefits. We would like to move some/all of our IRA holdings to our Roth IRA, over a period of years if necessary, to reduce the taxability of Capital Gains.
I know some considerations include the following:
? The basis of the transfer would be the value of the holdings at the time of the transfer;
? Increasing our taxable income would increase our tax rates;
? Increasing our taxable income might affect the taxability of our Social Security benefits;
? Increasing our taxable income might raise our Medicare costs;
? I will probably have to make quarterly payments to the IRS.

As a retired CPA, I can use the tables supplied by the IRS and Medicare to calculate these situations, although I think most people should consult with a tax advisor.

Am I missing anything?
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us