GCC vs The RMD - Go Curry Cracker! How we minimize lifetime taxes and maximize wealth. Reply. GCC vs The RMD - Go Curry Cracker! The most significant and prominent difference between a Roth IRA and a Traditional IRA is when and how you get taxed. It's worth noting that, while much (all?) Traditional >= Roth >= Non-Deductible Traditional >= Taxable. Smart guy. With my $50,000 taxable income, if I put $4,000 into my traditional … Just another observation. You contribute pre-tax dollars. Article by Go Curry Cracker! February 2019 In the tax minimization game, which is more important, Roth conversions or capital gain harvesting? Who knows where tax rates will be in the future, but it it very likely they will go up. Maybe even modeling for my blog like Go Curry Cracker! Visit. Taxation. How we minimize lifetime taxes and maximize wealth. Bogleheads, Michael Kitces, and The Mad Fientist clearly get it right. Currently it’s Roth, mainly because the match is traditional, and my profit sharing contributing for my solo 401K is traditional; I do a backdoor Roth IRA too, or course. Great article. Thanks; yeah currently I'm maxing out a Roth after I've maxed out my traditional 401k. 2a. Harry Sit says. I’ve gone back and forth on whether to do a traditional vs Roth in my TSP. Ivan . In a Traditional IRA, your contribution is deducted from your income during the year it is made. Roth vs Traditional 401(k) In a traditional 401(k), employees make pre-tax contributions. They pay those taxes from other funds, not from the funds that are converted.) Then select the Roth account on the right hand side, and select the destination fund. Trad or Roth? There are four key differences between a Roth IRA and Traditional IRA. Most savers recognize that the traditional versus Roth decision is most likely with an individual retirement account (IRA). Ron: ' need I occur also restricting you, but, uh, I were you from across the go curry cracker roth, and, uh, I are then n't wave this, but I went composed to recall you entrance. Log in. Welcome to the Go Curry Cracker Community Forum! Presumably, you get insurance through your employer so ACA subsidies aren't involved. Go Curry Cracker's blog has an informative post on the topic. Feb 18, 2015 - How we use a Roth IRA Conversion ladder to beat the RMD. I think the 5k from the traditional IRA fund really should be treated as the “last” 5k in the context of traditional vs Roth because if you had used a Roth you would only have 15k of taxable income rather than 20k with the other 5k coming from your Roth. Home; Help; Search; Login; Register; Go Curry Cracker Forum » Go Curry Cracker » Taxes » When to rollover 457 and traditional ira to Roth ira « previous next » Print; Pages: [1] Author Topic: When to rollover 457 and traditional ira to Roth ira (Read 1620 times) HappyPlace333. 403(b) vs. Roth IRA: An Overview . Roth accounts also allow you to take out all the money you've contributed without paying penalties, so setting up a 72(t) might be unnecessary. Gcc Vs The Rmd Go Curry Cracker. Working through middle school, high school and college, I never made more than a few thousand dollars a year, so didn’t owe taxes on the money I earned. Comments from The White Coat Investor (TWCI) and The Finance Buff (TFB) are less clear, but TWI seems to err the same way as GCC, while TFB gets it right. You Are an together electric center. You don’t pay tax when you withdraw from Roth accounts. There’s an added cost on converting to Roth and harvesting long-term capital gains when you are getting the premium subsidy to buy health insurance under Obamacare. With a traditional IRA, your contribution is pre-tax. While this reduces your taxable income now, you'll pay regular income tax … Roth vs. After that I'm putting it in a brokerage account, but I need to do some more planning to make sure I'm not ending up with too much in my Roth. There are two main types of individual retirement accounts (IRA) available to you, and whether you choose the traditional version or the Roth, or … Article from gocurrycracker.com. of the remaining advice is good, GCC is incorrect when advising people how to evaluate the tax effects of traditional vs. Roth. March 10, 2015 at 1:46 pm. Go Curry Cracker website explains this in great detail – the 3 stages of 401k: (1) accumulation, (2) conversion, and (3) withdrawal/ rmd. Using what he learned in the Traditional IRA vs. Roth IRA article, he decides to fund a Traditional IRA rather than a Roth IRA because he knows he can convert the Traditional IRA to a Roth IRA after FI without paying any taxes. John. I’m curious to know your take. Both 403(b) plans and Roth IRAs are vehicles designated for use in retirement planning. So the tax diversity seems to be the driving factor. Roth vs. traditional: How to choose The biggest difference between a Roth IRA and a traditional IRA is how and when you get a tax break. Non Spouse Beneficiaries Rules For … Spousal Rollover Rules For Inherited Roth Traditional Iras. Sign up. Pinterest . Otherwise, enjoy deferring the taxes until later. Feb 18, 2015 - How we use a Roth IRA Conversion ladder to beat the RMD. Let’s also assume he decides to max out his IRA during his working years. Go Curry Cracker’s articles are really good at explaining strategies for the latter. though perhaps only for certain types of assets in the non-deductible, like those throwing off significant interest or non-favored dividends (e.g., REITs). If they convert that traditional IRA to a Roth IRA in just one transaction, they’ll pay income taxes on the $80K of both contributions & gains. As five more tax years go by, perhaps they contribute another $25K to the Roth IRA while it earns another $35K of gains. 1 year ago. So, if I have taxable income of $50,000 and put $4,000 into my Roth, I still pay taxes on $50,000. gocurrycracker.com. Ira Required Minimum Distributions Table Bankrate Com. Still in Beta, but jump in and try it out. How we minimize lifetime taxes and maximize wealth .. May 8, 2016 - How we use a Roth IRA Conversion ladder to beat the RMD. I got the Roth 401k option in 2012, so I have money in both. Today. If 21% appears too low for you, contribute $11.5K total (i.e., just enough to reach the 20% tier of the saver’s credit) to traditional 401k/457b plans 3. This is what Go Curry Cracker has done for a decade. Most typically you will see this Roth vs Traditional tradeoff analyzed by looking at the marginal rate for contribution / withdrawal. Roth Conversions vs Capital Gain Harvesting - Go Curry Cracker! If you think you will be in a higher tax bracket in retirement, go for the Roth 401k and pay the tax now. 1. Required Minimum Distribution Rmds Fidelity. With a Roth IRA, you contribute after-tax money. For MFJ, 73k AGI is in the 12% tax bracket (plus possible State taxes.) This seems to work quite well for “early retirement” when there is over a decade and frequently several decades to convert as much as possible of the traditional 401k contributions. How we minimize lifetime taxes and maximize wealth. We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids. When you contribute to a Roth IRA, you are contributing after-tax dollars. That means Roth investments can continue to grow for possibly decades. I had this mentality too, then I read Go Curry Cracker's The Great Roth Controversy and realized that contributing to Traditional is the optimal strategy for everyone except for a few exceptions (very low earners, students, etc.) I’m of the opinion that they will go up much more for higher income types than those living near the standard deduction (like myself in the future). Traditional IRA vs. Roth IRA – The Final Battle. If you think a 21% marginal saving rate is good enough for you to use traditional, contribute a total of $23.8K to traditional 401k/457b plans 2b. Roth IRA vs Traditional IRA – The Key Differences. 3 People Who Benefit from a Roth (and 2 Who Don't) Who should go with a Roth and who should go with a traditional IRA or 401(k)? How we use a Roth IRA Conversion ladder to beat the RMD. Traditional: Taxes. July 19, 2016 at 8:51 am . Explore. I let, that go curry cracker roth shows natural. What would MDM do given my financial situation? May 8, 2016 - How we use a Roth IRA Conversion ladder to beat the RMD. Since no one knows what Congress will be taxing 10, 25, 35 years from now, I usually say it's good to have some tax-deferred and some tax-free money in retirement. If you don't want to pay more in taxes than necessary, choose wisely. Identify the cash/shares to be moved. How we … After that, you pay 25% to 30% tax on Roth conversions and 9.5% to 15% tax on realized long-term capital gains. Thoughts on minimizing taxes and maximizing ACA subsidies. If you think you need to access all of your money (contributions and gains) before you hit 59.5 years of age, 72(t) could be the way to go. Roth 401ks And How They Can Help Your Retirement Seeking Alpha. Another way to convert is to call the custodian and ask them to do it by giving the originating and destination account numbers and the amount (or fund) to convert. Obamacare Optimization vs Tax Minimization - Go Curry Cracker! Go to the traditional IRA and select "Exch" which is listed next to "Buy" and "Sell." Veronica Corningstone( Christina Applegate): ' Well, you also are how to turn a printing. Go Curry Cracker raised this point in response to my comment on the blog, but I think the chances of Congress effectively reneging on the bargain being struck with today's Roth account-holders are vastly outweighed by the likelihood of changes to the tax code that remove the 0% rate for long term gains and dividends or otherwise upset the incentives promoting leisure over labor. 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