Search found 28 matches

by renovator20
Wed Sep 16, 2020 1:25 pm
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

I just saw my goal to reduce pretax ira below 6 figures. I meant below 7.
by renovator20
Wed Sep 16, 2020 8:04 am
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

Next question, These are estimated numbers and not exact. We are 60/40 index funds/bonds Wife starts SS at FRA in 2021(aprox 10k yr). I'll wait till 70y/o in 2025 for SS Goal- get pretax Ira below 6 figures by 2026 If I disburse $270-$320K per year from my pre tax IRA for 5 yrs Direct transfer of in...
by renovator20
Tue Sep 15, 2020 6:41 am
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

It looks like we will be OK doing the conversions up to the 24% tax bracket. I understand the taxes we will pay and increased medicare costs while we convert. Thanks to everyone who posted the cost of moving funds from pre tax IRA to after tax in Roth or personal accounts. We will stay within 22-24%...
by renovator20
Mon Sep 14, 2020 2:07 pm
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

I am still working until 01/2021. Would like to start roth conversions this year Wife retired, no income Both of us are 65y/o no pension or social security until 70y/o Small after tax accounts in cash or index fund but big enough for emergency funds. Plan to make withdrawls for income next year from...
by renovator20
Mon Sep 14, 2020 8:38 am
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

OK, that makes sense. My pretax account transfer would be from Total stock market index and total bond index so the dividends, interest, and cap gains would be small if any.
Thanks!
by renovator20
Mon Sep 14, 2020 7:24 am
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

If I understand the question, you seem to want to know the downside of large Roth conversions: * Taxes will be owed * You could be pushed up to another tax bracket (or two) * You might trigger the IRMAA surcharge for higher Medicare/ drug plan premiums * Some SS that might not have been taxed, then ...
by renovator20
Sun Sep 13, 2020 2:32 pm
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Re: Roth conversion-How fast

I did not know about NIIT. 3.8% tax added over $250K?3. What individuals are subject to the Net Investment Income Tax? Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds: Filing Status Threshold Amount Married fi...
by renovator20
Sun Sep 13, 2020 2:18 pm
Forum: Personal Investments
Topic: Roth conversion-How fast
Replies: 26
Views: 2505

Roth conversion-How fast

Good afternoon, I'm looking for feedback to negative side of doing large roth conversions from my IRA. age 65 married,filling joint. No debt. Will delay SS until 70y/o maybe..... I would like to get my IRA below 1M by age 70. I can do my conversions up to the top of the 24% tax bracket but stay belo...
by renovator20
Wed Dec 18, 2019 4:24 pm
Forum: Personal Investments
Topic: Roth conversions before Social security
Replies: 18
Views: 1219

Re: Roth conversions before Social security

Thank you for the information about roth conversions, MAGI, and medicare. I am fortunate to have saved and compounded in the pre tax accounts. I will pay taxes on that without complaint. I am learning about the medicare rules that are new to me. I do not want to make any large mistakes once these pl...
by renovator20
Wed Dec 18, 2019 12:07 pm
Forum: Personal Investments
Topic: Roth conversions before Social security
Replies: 18
Views: 1219

Re: Roth conversions before Social security

Looks like I have to stay below $218,000 yr with roth conversions. It is not fair to save in working years and pay more in retirement because we are savers. As long as I understand the rules, we will be ok.
Thanks!
by renovator20
Wed Dec 18, 2019 11:37 am
Forum: Personal Investments
Topic: Roth conversions before Social security
Replies: 18
Views: 1219

Re: Roth conversions before Social security

Is Irma recalculated each year you take medicare part B, or is it based of the two prior years of earned income and fixed at that rate?
I am working on the retirement planning tool. I have not mastered all my entries in it yet.

Thanks for any clarification.
by renovator20
Wed Dec 18, 2019 9:40 am
Forum: Personal Investments
Topic: Roth conversions before Social security
Replies: 18
Views: 1219

Roth conversions before Social security

Good morning, I will retire aprox 9/2020 at 65 y/o and have a 7 figure amount in a pre tax IRA. My tax current bracket is below 22% married filing jointly. When I retire, should I convert some of my pretax IRA to a roth before I draw social security at 70y/o? I am considering converting up to the 24...
by renovator20
Sun Nov 10, 2019 5:13 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 610

Re: roth ira in 403b

I have really enjoyed learning from posters and replies. The investment community/business has been made quite complex and we have been good savers. Scott Burns columns have steered me in the direction of lazy investing. The last year really began my understanding for a managing a retirement plan. T...
by renovator20
Sun Nov 10, 2019 4:09 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 610

Re: roth ira in 403b

I am starting to understand the terminology. We live in Texas. An IRA is private. The 403b/401a and 403b roth are under a not for profit company retirement account. You can put $19,000-$24,000yr depending on age in these accounts divided up into either the 403b or 403 roth. (first is pre tax the oth...
by renovator20
Sun Nov 10, 2019 11:01 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 610

Re: roth ira in 403b

I am ignorant of many things and trying to understand the contribution limits by the Gov. An employee can contribute up to $19,000 yr to our 403b plus employer match to 401a depending on age. Since employer is offering a roth ira in 2020, $6000 is limit on contribution per year. What is the limit, o...
by renovator20
Sun Nov 10, 2019 9:31 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 610

roth ira in 403b

I have a peer who is still working and has - 403b/401a IRA with annual contribution limits and employer match Roth IRA's for him and his wife at current contribution limits, age less than 50. He can do roth conversion's from his employer IRA but pay taxes on those pre tax dollars. He also has post t...
by renovator20
Fri Oct 25, 2019 7:26 am
Forum: Personal Investments
Topic: balancing my retirement investments
Replies: 14
Views: 1324

Re: balancing my retirement investments

My concerns was do I add $200,000 to the total stock market index now. Then let it ride for more growth. The MM is stable (plus bond index),and easy to access but may be too much money out of the market or keep it liquid for stability when I need it. The $120,000 yr target is just to start moving pr...
by renovator20
Thu Oct 24, 2019 5:31 pm
Forum: Personal Investments
Topic: balancing my retirement investments
Replies: 14
Views: 1324

Re: balancing my retirement investments

I updated original post.Thanks for the questions.
by renovator20
Thu Oct 24, 2019 4:20 pm
Forum: Personal Investments
Topic: balancing my retirement investments
Replies: 14
Views: 1324

Re: balancing my retirement investments

My pre tax accounts are in an IRA. The $3000 loss is I put in $700000 in the total bond index last month and now the balance is $697,000. I don't know if interest is paid into that account at the end of each month. All dividends will be reinvested until I need the money for retirement 01/2021. At th...
by renovator20
Thu Oct 24, 2019 6:24 am
Forum: Personal Investments
Topic: balancing my retirement investments
Replies: 14
Views: 1324

balancing my retirement investments

Good Morning, I'm 64 wife is 64. I'll retire 01/2021, wife is homemaker and retired. No pension and wages around $140,000yr Own home, debt on tractor $30,000(zero interest), no other debt. House value $700,000 and recently renovated. Own late model cars. 403b/401a $127,000 putting in 15% with employ...
by renovator20
Wed Jul 03, 2019 11:39 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

Age 64 Spouse 64 I have finalized my pension cash out of $518,000 to be funded to my Vanguard IRA on August 1,2019. I have moved my 403b and most of my 401A from fidelity to a vanguard IRA in a MM holding account $1,200,000 to consolidate my IRA's in one place. I have $90,000 in a vanguard roth in b...
by renovator20
Mon Jun 03, 2019 7:21 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

I agree taking an annuity provides a solid base income every month until death. Adding SS also will provide most of our financial needs and allow more equity exposure in our other retirement account. Play it safe and secure or take market risk? If we die earlier than 85, we lose cash value of the an...
by renovator20
Fri May 31, 2019 9:40 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

Roth conversions? spousal SS, withdrawl rates..... I am learning a lot on what seems like a fast track for the next 14 months. My pension pay out to an IRA will happen 06/01/2019. In the big picture, we are secure and will park those funds in a IRA MM at vanguard or fidelity until deciding how to al...
by renovator20
Fri May 31, 2019 8:23 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

I thought you could not continue to contribute to a roth once you retire. My retirement plans are changing with delaying SS until 70. The income from my wife's SS will help ($11016 yr) starting 04/2021. My retirement date is (65 yrs) 09/2020. We have the assets to supply income until SS starts, and ...
by renovator20
Fri May 31, 2019 7:21 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

I looked at the social security calculator. It makes a clear case to delay SS until age 70 for me, and have my wife take hers at 66yr,2mos. Then she will apply for spousal benefits when I do.
Thank you!
by renovator20
Fri May 31, 2019 6:46 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

The retirement income goal of $90,000 includes taxes at %12. This leaves us about $20,000 yr disposable income if we want it. I have made the decision of taking the cash option. Now for reallocations and withdrawls. 70% total stock market index $1,425,000 25% total bond index $475,000 5% MM $95,000 ...
by renovator20
Thu May 30, 2019 11:53 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Re: Retirement plan [Pension lump sum or annuity?]

Significant other and myself are 64, and we are both healthy. I will retire 09/01/2020. Our plan was to get SS at 66 and 2mos.The total of our SS will be $3200/mo. There is no COLA with the annuity. Annuity survivorship benefit 50% $2808 then $1404mo 75% $2695.00 $2021 %100 $2590.00 $2590.00 The big...
by renovator20
Thu May 30, 2019 7:56 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 25
Views: 2120

Retirement plan [Pension lump sum or annuity?]

I am trying to decide if I should take a pension cashout or the annuity. The cash value is $514,000 vs the annuity monthy income of $2500 starting 09/01/2020. Age 64 no debt,married. annual expenses $60,000yr but want >$90,000yr SS to start at 66 2mos $32,000yr Retirement assetts $1,300,000 in Vangu...