We are 5 years of from RMD starting at age 73.
2024 income of slightly less than $100k
Our plan is to use existing cash for a roth conversion in the 22% tax bracket.
22% tax bracket, married filing jointly: $94,301 to $201,050
standardized deduction: $29,200 + $1950 = $31,150
so adjusted income 100k - 31k =69k
201k - 69k = 132k for roth conversion
This would be under the IRMAA bracket
IRMAA brackets:
$206,000 (2022) for Medicare part B
taxes owed on 200k = $28k federal marginal tax rate 22%, effective tax rate 14.26%
State tax $12k 6.75% marginal tax rate at 200k , effective tax rate 5.92%
28 + 12 = 40k paid taxes
Does this appear reasonable?
There would be no with-holding for taxes so the entire amount invested in the Roth IRA.
If the Roth Conversion is completed in Nov, do we pay the tax when we file in April 2025?
Thanks.
2024 income of slightly less than $100k
Our plan is to use existing cash for a roth conversion in the 22% tax bracket.
22% tax bracket, married filing jointly: $94,301 to $201,050
standardized deduction: $29,200 + $1950 = $31,150
so adjusted income 100k - 31k =69k
201k - 69k = 132k for roth conversion
This would be under the IRMAA bracket
IRMAA brackets:
$206,000 (2022) for Medicare part B
taxes owed on 200k = $28k federal marginal tax rate 22%, effective tax rate 14.26%
State tax $12k 6.75% marginal tax rate at 200k , effective tax rate 5.92%
28 + 12 = 40k paid taxes
Does this appear reasonable?
There would be no with-holding for taxes so the entire amount invested in the Roth IRA.
If the Roth Conversion is completed in Nov, do we pay the tax when we file in April 2025?
Thanks.
Statistics: Posted by Alaska_Skeeter — Wed Nov 20, 2024 6:28 am