When I worked on the Hill in college, our office receptionist (Michigan 3rd) was a very sweet but no nonsense older lady who was several times a grandmother.
Nancy PeePee and Taxarama...truth or fiction?
- Thread starter Miss Kitty
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TooFarTampa
SoWal Insider
haven't decided yet. My IRA isn't big, especially now. If you take advantage of the one-time conversion, can you still contribute to it afterward? I haven't been able to figure that one out.
I believe so, as long as you fit within the roth ira contribution limits. If not, it's a one shot deal. You can also keep contributing to a regular IRA after you do it. Maybe there are some folks on the board who can answer that better, I'm no tax expert.
I'm probably going to sit down with a cpa to figure it out. The big question seems to be, what do you expect your marginal tax rate to be when you're retired (which depends on how much you plan to live off of) and how that compares to your tax rate over the two years you declare the rollover. (You can apply the income over two years I believe.) I have a hard time guessing what I think I'll be living off of 20 years down the road.
Do y'all really think the retirement tax bracket will be that much higher? I expect it to be increased, but are you expecting it to reach the 30%+ range? I guess anything can happen over the next 2 mos. much less the next 20-30 years.
I was never a proponent of rolling the traditional to the roth since the inception of the roth. You can contribute to both, with the $5,000 limit imposed on them combined for single, $10K for married.
I'll look into this a little more deeply, but am thinking just opening a roth might be the way to go for now; however, I do understand the philosophy of the tax brackets being increased.
I was never a proponent of rolling the traditional to the roth since the inception of the roth. You can contribute to both, with the $5,000 limit imposed on them combined for single, $10K for married.
I'll look into this a little more deeply, but am thinking just opening a roth might be the way to go for now; however, I do understand the philosophy of the tax brackets being increased.
Lynnie, retirement vs. working rates, they are both the same.
The cut off today between 15% and 25% for a joint filing is 67K. Lets say you're making 100K combined today, and when you retire you need about 40K to live the life you dreamed of. Your tax rate would change by 10%. That of course assumes that those rates remain constant between now and when you retire. The difference between 40K and 67K isn't all that much and it wasn't too long ago you would be paying a heck of a lot more. Under Carter for example your top marginal rate at 40K inflation adjusted was about 40%. Are we headed back to those days? Who knows? It's a gamble for sure.
TooFarTampa
SoWal Insider
Not a fan myself. Although I don't think she is as bad as the people who circulate the above emails seem to think she is, there is a great deal that is inauthentic about her, and not because of the Botox. I never realized how much I disliked the way they elect majority and minority leaders. No Congressional leader in either party appeals to me at all.
30ashop, since you read the budgets, do you have any idea how much 2010 and 2011 tax is projected to be paid to the IRS because of conversions? I wonder if this will be a significant part of projected federal income or just the proverbial drop in the bucket.
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TFT - from what I am reading the tax liability on the conversion will be based upon your bracket, which makes the two year option to spread it out attractive, unless your income increases dramatically to 2011. The joys of the unknown~~~~~~
Not a fan of Nancy Pelosi at all............but, not because of the botox......I didn't even know she had gotten botox. They (all politicians) talk about working together, crossing the aisle, etc........Nancy Pelosi was/is a big violator of this.
Not a fan of Nancy Pelosi at all............but, not because of the botox......I didn't even know she had gotten botox. They (all politicians) talk about working together, crossing the aisle, etc........Nancy Pelosi was/is a big violator of this.
Not a fan myself. Although I don't think she is as bad as the people who circulate the above emails seem to think she is, there is a great deal that is inauthentic about her, and not because of the Botox. I never realized how much I disliked the way they elect majority and minority leaders. No Congressional leader in either party appeals to me at all.
30ashop, since you read the budgets, do you have any idea how much 2010 and 2011 tax is projected to be paid to the IRS because of conversions? I wonder if this will be a significant part of projected federal income or just the proverbial drop in the bucket.
I seem to recall something like 90 billion? Not sure. Also, I think you'll apply the income 50% in 2011, and 50% in 2012 (payable in 12 and 13), so with the markets the way they are and tax changes coming from Obama, it's hard to predict how many people will do it.
Found this, it's a pretty good summary:
http://www.investopedia.com/articles/retirement/08/roth-conversion-2010.asp
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