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dracut  creates  initial  image  for  preloading  block  device  modules  (IDE  SCSI  -  access  root  filesystem  &  booting 
december 2018 by kilroy2
How the new tax law creates a ‘perfect storm’ for Roth IRA conversions - MarketWatch
tags: How the new tax law creates a ‘perfect storm’ for Roth IRA conversions - MarketWatch | READ comments
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You are mistaken. 401k and IRA are separate contributions with their own limits. You can max out your 401k and still do maximum contribution to your IRA (either traditional or Roth.) Anyways, In my opinion, its inevitable Roth's will be taxed in the future when too many of us middle class peasants start not paying taxes on income. The Roth scam worked great when only the Rich knew about it, but there is no way the gov't is going to let ordinary people avoid taxes.
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Bert MLeader
20hEdited
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You should convert as much as you can up to the max limit of 12% tax bracket. When you start SS at whatever age or start RMDs at 70.5, depending on your income, you may be in the higher 22% tax bracket. I can convert about $14k per year right now from age 62 to 66, but when I start SS at 66, I will have to stop converting because it will bump me into the 22% tax bracket and will make my stock dividends taxed at 15%. My dividends are taxed at 0% right now.
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DMC XXXXXLeader
8 Aug
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am in a higher tax bracket and now retired 10 years--
I have one rental, one pension, 2 roths and one IRA, 2 SS checks.

My income is 33% higher than the year I retired.

I intend to convert the one IRA (400K) to a roth this year or over 4 years. That IRA id adding 15 to 18 K to my taxable income each year.
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RISHIYUR MOHAN
31 Jul
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A few observations about Roth IRA/conversions:
Remember, the holy grail of Social Security benefits were not taxable until it was changed under the leadership of Republican President Reagan in 1984. So what's to prevent future Presidents and Congress, of any political persuasion, from dipping into Roth withdrawals in the future?
I have heard that its not advisable to pay Roth conversion taxes with pre-tax(IRA) funds. If you do ,your retirement nest egg takes an immediate dip based on your tax rate (e.g. 20% tax rate will be $200K on a $1000K amount). You may not have to pay taxes on withdrawals but future returns will have to make up for the reduction in asset base.
If you are in pre-medicare status and are retired with ACA health coverage, watch out!! The premium subsidies vanish if you go even $1 above the allowable taxable income limit. For example, monthly premium could jump from $300/month to $1500/month if taxable income is not closely monitored.
So the question is - in a specific individual's situation, a Roth conversion could be a benefit or a major losing proposition.
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Mike Grant
30 Jul
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I agree way to many variables. I am really surprised that most people would be in a higher tax bracket when they retire. I have figured it out for my wife and I and we will be living on 50% of our current income. Once the kids are gone and we downsize it won't even be close. Maximizing all the tax deductions I can get while we are working is by far our best option. It may not be for you, but it's not nearly as cut and dry as the article would suggest
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jon deanInfluencerMike Grant
31 Jul
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I thought that I'd be in a lower tax bracket when I retired. Didn't do the math; should have. I'm in a higher tax bracket because the last decade that I worked, I was maxing out contributions to a 401K and a 357 retirement savings plan, plus a health savings plan. Combined, all those deductions from my pay put me in a lower bracket. Now, over 70, even those RMDs put me in a higher bracket when combined with my SS and pensions.
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Bert MLeaderMike Grant
19hEdited
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Most retirees are not in a higher tax bracket after retirement. A very small percentage may be in higher tax brackets due to large RMDs. For example, I am 62, retired since age 59 and have $111k per year income. I have $10k Roth dividends (not taxed) and $38k in stock dividends at 0% tax rate. If you deduct the $24k married deduction, I'm only paying tax on $39k for a 4% overall tax rate. I haven't started my SS or RMDs yet, so my tax rate will go up, but I probably will never be paying a higher tax rate from when I was working.
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How  the  new  tax  law  creates  a  ‘perfect  storm’  for  Roth  IRA  conversions  -  MarketWatch  |  read  comments 
august 2018 by neerajsinghvns

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