Author Topic: Roth rollover  (Read 3233 times)

coachz

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Roth rollover
« on: March 14, 2018, 03:40:50 PM »
How can I convert 800k from a traditional IRA to a Roth and avoid paying taxes on it while also resulting in a Magi below 20k?

gocurrycracker

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Re: Roth rollover
« Reply #1 on: March 15, 2018, 02:15:28 AM »
Do it piecemeal over 40 years?

This might be an example
https://www.gocurrycracker.com/gcc-vs-rmd/

coachz

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Re: Roth rollover
« Reply #2 on: March 15, 2018, 12:16:17 PM »
The problem is that withdrawing amounts above $30,000 raise the Magi to a point where health care costs soar.  I need some big boy tax strategies whether involving creating a business or some type of shelter that will allow the large amount of money to be legally converted over to the Roth and the income written off somehow.  The end result needs to have a magi around $17,000 so that the health care costs stay under control. Just like you and you're fine website my goal is to pay zero tax legally.  While the 401K  taxdeferred is cool during the accumulation phase  it seems to paint you in a corner  during the retirement phase . I have 10 years until rmds .  Thanks for any new brain storms you may have. I appreciate all you do.

gocurrycracker

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Re: Roth rollover
« Reply #3 on: March 16, 2018, 08:26:13 AM »
There is no magic bullet

Ways to eliminate the MAGI impact on the cost of health insurance:
Starting in 2019 there is no individual mandate with the ACA, so in theory you can buy an HDHP again.
At age 65 you qualify for Medicare, so no MAGI dependency there either.
You could move overseas for a time.
If you qualify, you could join a health care sharing ministry.

RMDs aren't such a big deal right away... starting at about ~4% at age 70.5, hitting 5% at age 80, and then ramping up thereafter. All Medicare years. Average life expectancy is ~80

coachz

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Re: Roth rollover
« Reply #4 on: March 16, 2018, 04:38:26 PM »
Thanks.  I was afraid of that.   I was hoping to never pay taxes again.  He he