Personal Finance and Investing

Susan Calvin

(2,274 posts)

10. I hadn't thought about that.

Fri Nov 29, 2024, 12:04 PM

Nov 2024

I still want to do it just to have it where I don't have to think about it anymore. I am fortunate enough not to need it for anything except self-insurance in the event I need long-term care. I don't want to take any withdrawals. Yeah, I should have thought about this sooner. If I don't do it this year, I have to start taking required minimum withdrawals next year.

Hopefully it won't be too bad on the Medicare. The year I retired I had a lot of unused leave that I got paid for, and I don't recall that it bumped up the Medicare a lot. I need to see if there's a calculator for that. Probably is.

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Roth IRA conversion tax reporting. I am so confused! [View all] Susan Calvin Nov 2024 OP

"The question is not whether that makes financial sense." mahatmakanejeeves Nov 2024 #1

Thanks. Susan Calvin Nov 2024 #2

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

Thank you. Susan Calvin Nov 2024 #16

You're welcome. And I am so relieved you are considering doing small conversion amounts at a time nmmi Nov 2024 #18

You are so nice to be relieved on my account. Thank you. Susan Calvin Nov 2024 #19

I do a small rollover like this every year Shermann Nov 2024 #3

Thanks. Susan Calvin Nov 2024 #4

Form 1040-ES Estimated Tax for Individuals mahatmakanejeeves Nov 2024 #5

Oh thank you! Susan Calvin Nov 2024 #6

You should get your November monthly statement from whoever runs your IRA in a few days. mahatmakanejeeves Nov 2024 #7

Oh great, one more thing to deal with. Susan Calvin Nov 2024 #8

She will have no capital gains to separate out kansasobama Nov 2024 #28

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 think yours is the best advice I have received, Susan Calvin Nov 2024 #12

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

I hadn't thought about that. Susan Calvin Nov 2024 #10

Oh ouch. Susan Calvin Nov 2024 #11

Are both the traditional and Roth with the same custodian? No forms are needed question everything Nov 2024 #13

They are. It was only the estimated taxes I was concerned about. Susan Calvin Nov 2024 #17

Also, depending on the amount you may be subjected to Alternative Minimum tax. question everything Nov 2024 #20

Oh it's nowhere near enough for that. Susan Calvin Nov 2024 #21

You might consider NOT doing any Roth conversions -- nmmi Nov 2024 #22

Thank you for all the detailed advice. Susan Calvin Nov 2024 #23

Interesting - 20 years is my base case default assumption on longevity in my spreadsheet nmmi Nov 2024 #24

Oh I'm sure it's not too intuitive. Susan Calvin Nov 2024 #25

If you can, spread it out until 2032 kansasobama Nov 2024 #26

I'm not worried. I don't think I ever said or implied that I was. Susan Calvin Nov 2024 #31

Penalty is minimal even if you do not pay estimated taxes on time kansasobama Nov 2024 #37

Another sugestion when you convert from a IRA to the Roth if you have enough doc03 Nov 2024 #27

Good advice although kansasobama Nov 2024 #29

Absolutely. One advice that I keep reading consistently, is to never pay taxes from an IRA account, always pay the nmmi Nov 2024 #30

I'm glad I asked the question, as long as y'all didn't mind replying. Susan Calvin Nov 2024 #33

And then there is the NOT-simple matter about how much estimated tax to pay nmmi Nov 2024 #34

I don't think that's going to be a problem in my particular case, but Susan Calvin Nov 2024 #35

I use TurboTax to do my taxes and file online. Then when I get it right I print my tax return to have a permanent nmmi Nov 2024 #36

Yes, that was my plan. Susan Calvin Nov 2024 #32