[Cindy]

Advise from retirees?…
When you do roth conversions before age 72.5 to minimize RMDs what factors do you have to consider?

ie: what portion of social security will be taxed & medicare premium reimbursements?

Am I missing something?? I tried asking professionals (financial advisors, accountants, insurance salesman) but they don’t know anything and refer to eachother in circles

[John]

all that matters is the tax rate you are at now compared to the future tax rate.

[Chris]

FICA comes out before your money goes into your 401k. “Keep in mind that while you do not have to pay income taxes on the money you contribute to a 401(k), you still pay FICA taxes, which go toward Social Security and Medicare.

That means that the FICA taxes are still calculated based on the full paycheck amount, including your 401(k) contribution.”

[Tom]

I’m on social security and Medicare. I have been filling out my tax bracket (12%) each year with Roth conversions.

My main concern is if I forget to wake up some morning, my wife would be forced into a higher tax bracket the following year.

I’ve been able to convert about 50k a year but my portfolio has been growing faster.

I know, not the worst problem to have…

[Author]

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