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In reply to the discussion: Roth IRA conversion tax reporting. I am so confused! [View all]doc03
(37,835 posts)9. I don't know your age. But I converted part of my IRA to a Roth at 64 one year before
I was eligible for Medicare. When I went on Medicare the first year, I paid the minimum Medicare
premium. The second year I was on Medicare my Medicare premiums doubled for that year. I made
the switch the year before to avoid paying a higher premium for Medicare. Then I found out they base
your Medicare premium on your income two years before. When I converted, I had the highest income that year
I had ever had in my life.
As far as the paperwork for the conversion and taxes T. Rowe Price took care of that.
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Capital gains is a non-issue with IRAs. One is taxed on the value of the IRA at the time of withdrawal or conversion
nmmi
Nov 2024
#15
You're welcome. And I am so relieved you are considering doing small conversion amounts at a time
nmmi
Nov 2024
#18
You should get your November monthly statement from whoever runs your IRA in a few days.
mahatmakanejeeves
Nov 2024
#7
You don't have to wait to Jan 15. We pay the last estimated around the middle of December
question everything
Nov 2024
#14
I don't know your age. But I converted part of my IRA to a Roth at 64 one year before
doc03
Nov 2024
#9
Are both the traditional and Roth with the same custodian? No forms are needed
question everything
Nov 2024
#13
Also, depending on the amount you may be subjected to Alternative Minimum tax.
question everything
Nov 2024
#20
Interesting - 20 years is my base case default assumption on longevity in my spreadsheet
nmmi
Nov 2024
#24
Absolutely. One advice that I keep reading consistently, is to never pay taxes from an IRA account, always pay the
nmmi
Nov 2024
#30