Row 83462

Row ID: 83462 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 83462 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

1. You need to look at how much income you expect to have on the year and what marginal bracket that puts you in. So how much did you make this year before getting laid off and how much will you make later this year if you get a new job?

This is important because the amount you convert will be added to your taxable income. If you are close to or are in the 22% tax bracket, it probably doesn’t make sense to do a Roth conversion because that full amount would be taxed at 22%.

When you take normal distributions in retirement you fill up the standard deduction and lower tax brackets first (unless you have fixed income that will already take up those brackets like a pension or rental income). You would have to pull a good chunk of money out each year in retirement to have an effective tax rate of 22% to match your marginal tax rate you would pay on the conversion today.

2. You have 3 options with your old 401k: - leave it where it is if that is allowed and you like the 401k provider. - roll it over to your new 401k once you get a new job. - roll it over to a traditional Ira. The only reason not to do this is if you think you will be above the Roth IRA income limit to make direct contributions and need to do the backdoor Roth IRA. You don’t want any pretax money sitting in any IRAs if you need to do the backdoor Roth IRA as it messes with the taxation of that.

FieldValue
text 1. You need to look at how much income you expect to have on the year and what marginal bracket that puts you in. So how much did you make this year before getting laid off and how much will you make later this year if you get a new job? This is important because the amount you convert will be added to your taxable income. If you are close to or are in the 22% tax bracket, it probably doesn’t make sense to do a Roth conversion because that full amount would be taxed at 22%. When you take norm…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-24
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url_encoded Z0FBQUFBQm5Lak80c3ZWeVNkbU1oRmduaDhkUlA1blZFeks4WDlaSjh4dGtEN280UWlSR1U1RnFleHpHVk9NWF9Vc3g4S0hIM2lMbVpyaThONUJ1UnI0RVFkRFk2ang5ZkRmTl9rQldzTjNsZ0xFY2pnRlpLbS1mbWxtUDB6YXppd3NqYmJubzhCM0g0eHNXbm96cFlvaEdNZDVZSmhWX09PRVdwMy04cEFqM1BnbHBUTXRndjczN0h0QnNqZ01jbHQza2RlVnQ5UDQxZVJQZ1JiTFk1T2U0V2I2cHN1V0gxUT09

Raw Record

{
  "text": "1. You need to look at how much income you expect to have on the year and what marginal bracket that puts you in. So how much did you make this year before getting laid off and how much will you make later this year if you get a new job? \n\nThis is important because the amount you convert will be added to your taxable income. If you are close to or are in the 22% tax bracket, it probably doesn’t make sense to do a Roth conversion because that full amount would be taxed at 22%.\n\nWhen you take normal distributions in retirement you fill up the standard deduction and lower tax brackets first (unless you have fixed income that will already take up those brackets like a pension or rental income). You would have to pull a good chunk of money out each year in retirement to have an effective tax rate of 22% to match your marginal tax rate you would pay on the conversion today. \n\n2. You have 3 options with your old 401k:\n- leave it where it is if that is allowed and you like the 401k provider.\n- roll it over to your new 401k once you get a new job.\n- roll it over to a traditional Ira. The only reason not to do this is if you think you will be above the Roth IRA income limit to make direct contributions and need to do the backdoor Roth IRA. You don’t want any pretax money sitting in any IRAs if you need to do the backdoor Roth IRA as it messes with the taxation of that.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-24",
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