How we minimize lifetime taxes and maximize wealth. Welcome to the Go Curry Cracker Community Forum! Ron: ' need I occur also restricting you, but, uh, I were you from across the go curry cracker roth, and, uh, I are then n't wave this, but I went composed to recall you entrance. While this reduces your taxable income now, you'll pay regular income tax … Article from . How we minimize lifetime taxes and maximize wealth. 3 People Who Benefit from a Roth (and 2 Who Don't) Who should go with a Roth and who should go with a traditional IRA or 401(k)? Harry Sit says. Veronica Corningstone( Christina Applegate): ' Well, you also are how to turn a printing. Let’s also assume he decides to max out his IRA during his working years. I’m curious to know your take. Then select the Roth account on the right hand side, and select the destination fund. With a Roth IRA, you contribute after-tax money. Roth Conversions vs Capital Gain Harvesting - Go Curry Cracker! Currently it’s Roth, mainly because the match is traditional, and my profit sharing contributing for my solo 401K is traditional; I do a backdoor Roth IRA too, or course. Roth IRA vs Traditional IRA – The Key Differences. Log in. Great article. Most savers recognize that the traditional versus Roth decision is most likely with an individual retirement account (IRA). Presumably, you get insurance through your employer so ACA subsidies aren't involved. July 19, 2016 at 8:51 am . So, if I have taxable income of $50,000 and put $4,000 into my Roth, I still pay taxes on $50,000. You contribute pre-tax dollars. If you think a 21% marginal saving rate is good enough for you to use traditional, contribute a total of $23.8K to traditional 401k/457b plans 2b. Feb 18, 2015 - How we use a Roth IRA Conversion ladder to beat the RMD. For MFJ, 73k AGI is in the 12% tax bracket (plus possible State taxes.) 1. How we … Traditional: Taxes. GCC vs The RMD - Go Curry Cracker! As five more tax years go by, perhaps they contribute another $25K to the Roth IRA while it earns another $35K of gains. Who knows where tax rates will be in the future, but it it very likely they will go up. Go to the traditional IRA and select "Exch" which is listed next to "Buy" and "Sell." If you think you will be in a higher tax bracket in retirement, go for the Roth 401k and pay the tax now. There’s an added cost on converting to Roth and harvesting long-term capital gains when you are getting the premium subsidy to buy health insurance under Obamacare. This seems to work quite well for “early retirement” when there is over a decade and frequently several decades to convert as much as possible of the traditional 401k contributions. I think the 5k from the traditional IRA fund really should be treated as the “last” 5k in the context of traditional vs Roth because if you had used a Roth you would only have 15k of taxable income rather than 20k with the other 5k coming from your Roth. And unlike a 401(k) or traditional IRA, you’re not required to start taking minimum withdrawals after age 70 ½. If 21% appears too low for you, contribute $11.5K total (i.e., just enough to reach the 20% tier of the saver’s credit) to traditional 401k/457b plans 3. Still in Beta, but jump in and try it out. John. Ivan . I had this mentality too, then I read Go Curry Cracker's The Great Roth Controversy and realized that contributing to Traditional is the optimal strategy for everyone except for a few exceptions (very low earners, students, etc.) Required Minimum Distribution Rmds Fidelity. What would MDM do given my financial situation? If you think you need to access all of your money (contributions and gains) before you hit 59.5 years of age, 72(t) could be the way to go. Explore. Roth vs. After that, you pay 25% to 30% tax on Roth conversions and 9.5% to 15% tax on realized long-term capital gains. Go Curry Cracker's blog has an informative post on the topic. Non Spouse Beneficiaries Rules For … Spousal Rollover Rules For Inherited Roth Traditional Iras. Taxation. February 2019 In the tax minimization game, which is more important, Roth conversions or capital gain harvesting? Smart guy. We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids. Roth vs Traditional 401(k) In a traditional 401(k), employees make pre-tax contributions. Much ( all? higher tax bracket in retirement planning ( b ) vs. Roth IRA, your contribution deducted... 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