I am retired at 56 (for one year so far), ![:beer]( "beer")
and the next few years are going to be paid for out of my taxable ($800k) brokerage. I can adjust my capital gains because I have some assets that have done well and some that have not. Most of my retirement savings ($2.2M) are in IRAs, and I want to convert as much as possible to ROTH, but I am having trouble figuring out how much to convert. Conversions count as earnings, so it affects taxes. ![:moneybag]( "money bag")
If my earnings are below $96k then the tax is 0% on capital gains, which is sweet. But keeping under $96k would limit the amount of ROTH conversions. Another factor is that ACA payments are directly related to income. My intuition is to sell stocks as needed each year (losers first), then use up the remaining earnings as a ROTH conversion in December. Take the total earnings to $126K, which would be $96k after the 30k standard deduction. This would probably allow a conversion of $60k/yr. Is that aggressive enough?![:sharebeer]( "celebrate")
and the next few years are going to be paid for out of my taxable ($800k) brokerage. I can adjust my capital gains because I have some assets that have done well and some that have not. Most of my retirement savings ($2.2M) are in IRAs, and I want to convert as much as possible to ROTH, but I am having trouble figuring out how much to convert. Conversions count as earnings, so it affects taxes. 
If my earnings are below $96k then the tax is 0% on capital gains, which is sweet. But keeping under $96k would limit the amount of ROTH conversions. Another factor is that ACA payments are directly related to income. My intuition is to sell stocks as needed each year (losers first), then use up the remaining earnings as a ROTH conversion in December. Take the total earnings to $126K, which would be $96k after the 30k standard deduction. This would probably allow a conversion of $60k/yr. Is that aggressive enough?
Statistics: Posted by McCharley — Sat Nov 23, 2024 10:32 pm — Replies 5 — Views 379