Go Curry Cracker Forum
Go Curry Cracker => Taxes => Topic started by: Ineedcoffee123 on November 12, 2020, 10:32:36 AM
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Hi Jeremy,
It looks like we will have $39,800 of the $104,800 bucket since I'm projecting we'll make $65,000 (MFJ) this year roughly. I've never had a year like this and would like to take advantage of this since in the years past, never knew as much as we do now (thanks to your site!) Should I do a roth 401k conversion or tax gain harvest at this point? My brokerage account is less than $10k but we are in NY so also have to pay state taxes. We will have access to a 457b with retirement hopefully in 5 years or so but because of the pension in retirement, I already see we will be bumped into the 12% federal bracket on top of the state taxes.
Also, the federal estimated taxes are roughly $429 so does it even make sense to do a tax loss harvest?
Congrats on the latest addition!
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Should I do a roth 401k conversion or tax gain harvest at this point?
If you do a Roth conversion you will pay some tax now, probably 12% federal and 6.x% state (~18% total?)
If that is less than or equal to what you will pay in retirement, then a Roth conversion helps. If it is higher, than it doesn't.
You can compare similar numbers for realizing a capital gain... maybe 0% federal 6% state now vs 0% federal 6% state later.
Also, the federal estimated taxes are roughly $429 so does it even make sense to do a tax loss harvest?
Sorry, I'm not sure what you are asking