I turned 62 this year and my income dipped a little. I decided to convert a large chunk, up to top of 24% bracket, of Traditional IRA money to a Roth IRA. I sold stocks in our taxable account to pay the estimated taxes on the conversion (and capital gains on the stock sale).
This got me thinking about the remaining capital gains I have in the taxable account. I have been thinking of selling the entire mess of dividend stocks in the taxable account and converting everything to VTI. My question is timing. Doing it this year means NIIT on the gains but doing it next year means NIIT and IRMAA. Given that I'm at the top of the 24% bracket this year, I probably shouldn't sell any short term gains this year but all my long term gains would only be taxed at 15% (plus NIIT).
Can I get a sanity check on this? Am I thinking through this correctly?
Also next year I need to decide if I should do a Roth conversion to the IRMAA limit ($206K) or the top of the 24% bracket or not at all.
Thank you in advance.
This got me thinking about the remaining capital gains I have in the taxable account. I have been thinking of selling the entire mess of dividend stocks in the taxable account and converting everything to VTI. My question is timing. Doing it this year means NIIT on the gains but doing it next year means NIIT and IRMAA. Given that I'm at the top of the 24% bracket this year, I probably shouldn't sell any short term gains this year but all my long term gains would only be taxed at 15% (plus NIIT).
Can I get a sanity check on this? Am I thinking through this correctly?
Also next year I need to decide if I should do a Roth conversion to the IRMAA limit ($206K) or the top of the 24% bracket or not at all.
Thank you in advance.
Statistics: Posted by HausaPain — Tue Aug 20, 2024 2:05 pm — Replies 0 — Views 5