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We are trying to come up with a strategy to draw down our assets in retirement. Our income needs are low, and we will be trying to lower our future tax liabilities before we start to draw on SS.

IIRC at this time if our income falls in the 10 or 15% tax bracket, currently up to $73,800 for married filing jointly, then our tax on LT cap gains should be zero.

But I am having problems visualizing how to use this information. Consider the following theoretical:

1. Convert $50,000 TIRA, fully taxable, to Roth, using savings for taxes.
Cash in $50,000 worth of stock that has a $20,000 LT cap gain.
???Would be taxed on only the $50K conversion???

2. Convert $70,000 TIRA, fully taxable, to Roth, using savings for taxes.
Cash in $50,000 worth of stock that has a $20,000 LT cap gain.
???Taxed regular rates on $70K plus ($90,000-$73,800) at 15%???



Any book recs on Retiree Tax Strategies for Dummies?

IP
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