Cemanuel 2022 Portfolio Thread

[cemanuel]

(06-03-2022, 05:41 AM)rayray Wrote:

(06-02-2022, 08:44 PM)cemanuel Wrote:

(06-02-2022, 04:25 PM)rayray Wrote: i know i'll be in this boat one day and will have to transfer funs from traditional ira to roth--read a little but never delved into it

is there a maximum/limit to convert??

Conversions are pretty wide open. As much as you want and as often as you want. But there are the taxes. There are other issues to consider such as income levels impacting what you pay for Medicare. That starts 2 years before eligibility so in 2025 that'll be another thing I'll have to think about.

part of the reason why i haven't done much reading/research, if any, is because still working at 51 i'm in a higher tax bracket, no reason to convert anything from ira to roth, imho. 

but another reason is i keep thinking why bother, the rules might change by the time i do retire

however, whether i work 5 years or 11 years that time will go quick--i really need to understand the process of this conversion process

In some ways it's a bit of a shell game as you're doing something now predicated on what you think will happen in the next however many years. For me it's RMDs at 72 ( a little over 12 years) which will almost certainly catapult me into a higher tax bracket. Heck, if I used my current balances it gets me close and while I expect income levels for brackets to go up I doubt they'll be by as much as the IRA balance or my dividend income grow.

But if you could somehow guarantee that we're about to enter one of those lost decades and my IRA balance in 2034 would be about what it is now I'd say screw it and leave it alone.