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Retirement Planning / Roth conversion a good idea?
Nov 25, 2021
Roth conversion a good idea?
Haven't been employed this year. Decided to take a break and quit my job and haven't gone back as I've saved enough and invest some too. With 2 old 401ks I've rolled those into my Trad IRA and since I literally have less than 5K in divs & capital gains, I'm thinking it's probably a good idea to do a Roth conversion. Thinking to contribute up to the $9,950 so that it doesn't push me up to the next tax bracket. I've never done this before and only started reading up on it since it's contested in congress! Does my logic sound right to you? Thanks a bunch!
Replies (3)
Nov 25, 2021
@Paula647, It does sound right. Been learning up on this myself altho I'm in the 12% tax bracket and have about 15k that I could convert. I'd just need to make sure I have enough covered to pay taxes on the amount I convert!
Nov 25, 2021
@Paula647, From what you shared here, could be a nice move. Have you thought of going up to 12% tax bracket? That bracket goes to 22% at around $40.5K, which means you could potentially add 35K. But you'll have to have the money on hand to pay taxes on the 35K.
Nov 27, 2021
@Ajay714, thanks to you both for the vote of confidence! This is an excellent idea here too.