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10-25-2006, 03:26 PM
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#1 |
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Demiurge
Join Date: Aug 2005
Posts: 36,365
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rollover IRA into Roth
my financial adviser dude told me I should take my last job's IRA and roll it over into a Roth. Since presumably this is the last year I can make a contribution to a Roth.
Of course I will take a tax hit by doing so. But he says overall this is the best move. We are talking about $14k (total IRA amount). What do you guys think? |
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10-25-2006, 03:54 PM
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#2 | |
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Senior Member
Join Date: Jan 2006
Posts: 6,177
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Quote:
You have to look at your tax bracket now compared to what it will be when you retire. For me, with kids and a big mortgage, my tax bracket is low and with any luck when I retire it will be high. So for me, it would probably be right to move it to Roth. |
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10-25-2006, 03:56 PM
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#3 |
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Demiurge
Join Date: Aug 2005
Posts: 36,365
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my income this year is significantly lower than it will be for the foreseeable future. I am getting a big raise next summer. That is why I won't be able to ever do something like this again.
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10-25-2006, 04:16 PM
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#4 | |
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Senior Member
Join Date: Jan 2006
Posts: 6,177
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Quote:
I love Uncle Sam right now. My tax situation is such that 110K in total compensation is the breakoff of where I pay Fed Tax. Anything under that, and the gov pays me to go to work. Anything over that, and I pay tax. |
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10-25-2006, 04:20 PM
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#5 |
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Demiurge
Join Date: Aug 2005
Posts: 36,365
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damn. how many kids do you have?
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10-25-2006, 04:34 PM
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#6 | |
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Senior Member
Join Date: Jan 2006
Posts: 6,177
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Quote:
Per child you get $3,350 in deduction and child tax credit covers $6,666 of income at lowest bracket. Throw in a big mortgage, tithing ( on the gross  ), a large 401K contribution, and health care premiums and FSA, and you cover a lot of income.Current tax plan is a boon for Mormons. |
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