The difference was explained by respondents in your other thread. Don't do it.boston2013 wrote:we should roll her 401k into a Vanguard IRA when the year ends? There will be no difference from a tax point of view to leaving it in the 401k but more investment options with lower er. Is this correct?
That doesn't seem right. With three kids your phaseout should be $110,000 - $170,000 AGI, which equates to something like $134,000 - $194,000 gross.bungalow10 wrote:We also do not currently get any child tax credits.
Sounds like you're borrowing at 6.8% to invest in taxable. It doesn't make sense for Roth either (and by the way it doesn't make sense to prioritize Roth over 401k when you're in the 28% bracket and live in Georgia).ugaDAWGS09 wrote:we have about 50k available to invest in a taxable account
Jack wrote:If you are maxing out your SEP, you might be better off with a 401(k) which has a higher ceiling. You don't necessarily need to do a Roth conversion of a SEP to increase your tax-deferred contributions.
I believe we've established that it's 0% with $20k of headroom, because "he has no need for a tax deduction".retiredjg wrote:How did we get this far into this discussion without determining the poster's tax bracket?
This is much better than the link I posted, although what's missing on the phaseouts is the effective incremental marginal rate due to the phaseout.JamesSFO wrote:This College for Financial Planning limit summary for 2013 is a helpful PDF: http://www.cffpinfo.com/pdfs/2013_Annual_Limits.pdf
Except for a spouse not covered by a retirement plan, in which case they're the same.curiouskitty wrote:The Deductible and Roth IRA phaseouts (they are different)