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Taxes / Tax gain harvest or Roth conversion with fed/state taxes to consider?
« on: November 12, 2020, 10:32:36 AM »
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!
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!