401K

[oldngray]

You don't have to pay any taxes when you transfer it over you only have to pay taxes when you actually withdraw the money for yourself.

That is why it is called a rollover. As long as you just transfer it into another account you don't have to pay any taxes.

 

[upschuck]

You don't have to pay any taxes when you transfer it over you only have to pay taxes when you actually withdraw the money for yourself.

I want to roll over into a Roth, so there is no RMD.

 

[upschuck]

That is why it is called a rollover. As long as you just transfer it into another account you don't have to pay any taxes.

You can roll over into a Roth.

 

[IVE GOTTA PACKAGE 4U]

I want to roll over into a Roth, so there is no RMD.

It's not that easy

You have to do conversion and pay a tax on the money you convert.

For worried about paying taxes later on down the line
The switch your future contributions to Roth right now

 

[oldngray]

Maybe go open up a Roth IRA and that way you already be established with another firm so it will make transferring your money that much easier

You can probably do that at the same bank you use for other accounts.

 

[oldngray]

It's not that easy

You have to do conversion and pay a tax on the money you convert.

For worried about paying taxes later on down the line
The switch your future contributions to Roth right now

You do have to pay the taxes right away if you convert it to a Roth.

 

[Thebrownblob]

You don't have to pay any taxes when you transfer it over you only have to pay taxes when you actually withdraw the money for yourself.

Thanks Dave

 

[badpal]

The smartest thing I ever did was not panic

I took an extra money I could find and doubled down.

Now I'm pretty good shape heading into retirement..

Heck, we were so busy during pandemic didn't really have time or the energy to do anything too stupid.

 

[oldngray]

Thanks Dave

Want him to do your income taxes?

 

[IVE GOTTA PACKAGE 4U]

You do have to pay the taxes right away if you convert it to a Roth.

So you definitely with money from outside of the 401K plan and you definitely do not want to convert it all at one time

 

[Thebrownblob]

Want him to do your income taxes?

I used to do my own, but they’re too complicated now screw it. Not to mention the last time I used TurboTax it was not that much cheaper than paying an accountant and tax person.

 

[IVE GOTTA PACKAGE 4U]

Heck, we were so busy during pandemic didn't really have time or the energy to do anything too stupid.

I just saw a small window of opportunity and I took it.
But yeah you're right the pandemic crushed my body

 

[oldngray]

So you definitely with money from outside of the 401K plan and you definitely do not want to convert it all at one time

The advantage of Roth is after you pay the taxes up front everything it makes after that is tax free. The earlier you start one the better. Not much advantage of doing it if you wait until retirement age to do so.

 

[IVE GOTTA PACKAGE 4U]

The advantage of Roth is after you pay the taxes up front everything it makes after that is tax free. The earlier you start one the better. Not much advantage of doing it if you wait until retirement age to do so.

Well have a small window of opportunity before the tax rates change.
We have the rest of this year and next year before it goes back to the old tax brackets

 

[upschuck]

It's not that easy

You have to do conversion and pay a tax on the money you convert.

For worried about paying taxes later on down the line
The switch your future contributions to Roth right now

I know, that's why I want a good website to guide me through the whole transition. I hear Medicare is raised, if you make too much money every year. Want to keep everything as low as I can.

I wonder how much Medicare premiums get higher? Hmmm. If not that much, maybe I'm fretting for nothing.

 

[upschuck]

So you definitely with money from outside of the 401K plan and you definitely do not want to convert it all at one time

Don't want to pay more than I have to

 

[oldngray]

I used to do my own, but they’re too complicated now screw it. Not to mention the last time I used TurboTax it was not that much cheaper than paying an accountant and tax person.

TurboTax is really bad about adding on extra fees after you start working on your taxes. I used it a couple of times a long time ago but now I use the H&R Block software. It is getting almost as bad. The days when I could do it all on paper by myself are long gone.

 

[IVE GOTTA PACKAGE 4U]

I know, that's why I want a good website to guide me through the whole transition. I hear Medicare is raised, if you make too much money every year. Want to keep everything as low as I can.

I wonder how much Medicare premiums get higher? Hmmm. If not that much, maybe I'm fretting for nothing.

You have to make a good amount of money before your Medicare premiums go up

 

[Thebrownblob]

TurboTax is really bad about adding on extra fees after you start working on your taxes. I used it a couple of times a long time ago but now I use the H&R Block software. It is getting almost as bad. The days when I could do it all on paper by myself are long gone.

Yep the last time I used TurboTax it was close to $200 with me doing all the work. I think I paid a little over 300 for actual tax person to prepare it and do it all for me. Much less stress.

 

[upschuck]

You have to make a good amount of money before your Medicare premiums go upView attachment 495255

They take the last 3 years average, correct? But converting a 401k counts towards that amount, I believe.