Great content! As a 34 y/o my plan for 2024 was to max roth 401k and roth ira but at the 22% bumping the 24% bracket maybe this isn't fully right. Between hsa contributions, social security and employer match though ill still have plenty of taxable money in the future hmm.
Just make sure it’s before the market decline not after. For example if you paid 25% to convert $100k at the end of 2021 and your account lost 25% of its value when stocks and bonds tanked in 2022, your account would need to increase 33% just to get back to the level you already paid tax on.
To maximizr the ACA subsidy, do the ROTH converted $s count as income (count against me) for qualifing me for the subsidy OR is there a way to get a higher subsidy by making a ROTH conversion, either in the same year or prior year to trying to maximize my ACA subsidy?
Thank you! We don’t let anyone work with us if we don’t think we can add value that justifies our fee. Set up a call and you can learn more if you’d like.
Great information. Making that decision to convert is a tough one (emotionally). Thanks
You’re welcome. Very tough to pay taxes when you don’t NEED to.
Excellent explanation, Ari, thank you for your time!
Of course. You’re very welcome David!
Great content! As a 34 y/o my plan for 2024 was to max roth 401k and roth ira but at the 22% bumping the 24% bracket maybe this isn't fully right. Between hsa contributions, social security and employer match though ill still have plenty of taxable money in the future hmm.
Just make sure it’s before the market decline not after. For example if you paid 25% to convert $100k at the end of 2021 and your account lost 25% of its value when stocks and bonds tanked in 2022, your account would need to increase 33% just to get back to the level you already paid tax on.
To maximizr the ACA subsidy, do the ROTH converted $s count as income (count against me) for qualifing me for the subsidy OR is there a way to get a higher subsidy by making a ROTH conversion, either in the same year or prior year to trying to maximize my ACA subsidy?
the best is any earning of the roth is tax free. backdoor roth as much as possible if your income is low. you always win with the tax free.
Would love you to help us but afraid it would cost to much. 60ish and retiring within 6 months. Love the info both you and James share!
Thank you!
We don’t let anyone work with us if we don’t think we can add value that justifies our fee. Set up a call and you can learn more if you’d like.
We will certainly have to do that, especially for maximizing the tax planning aspect.
We look forward to helping you!