[Topic is now in Personal Finance (Not Investing) - mod mkc]
I will be doing my first Roth conversion this year (newly retired, first year with no salary), while keeping an eye on tax brackets and IRMAA brackets. What I hadn't considered is the impact of a modest inheritance this year(by way of being Payable On Death beneficiary to a bank account) has on my income (for tax purposes) and my MAGI (per IRMAA).
The total inheritance (paperwork necessities will lead to more assets coming in 2025) will be way below the state or federal threshold for when inheritance becomes taxable. I am assuming, without certainty, the Payable On Death is considered part of the estate but am uncertain. I could also try to slow roll it into 2025 if that would be of benefit.
Any relevant knowledge and insights would be appreciated.
I will be doing my first Roth conversion this year (newly retired, first year with no salary), while keeping an eye on tax brackets and IRMAA brackets. What I hadn't considered is the impact of a modest inheritance this year(by way of being Payable On Death beneficiary to a bank account) has on my income (for tax purposes) and my MAGI (per IRMAA).
The total inheritance (paperwork necessities will lead to more assets coming in 2025) will be way below the state or federal threshold for when inheritance becomes taxable. I am assuming, without certainty, the Payable On Death is considered part of the estate but am uncertain. I could also try to slow roll it into 2025 if that would be of benefit.
Any relevant knowledge and insights would be appreciated.
Statistics: Posted by PerfectName — Sun Nov 24, 2024 8:13 pm — Replies 7 — Views 435