Okay, I did go to bed by 11pm...but it felt very late to me. I was working on next years tax estimations! I know. I'm a nerd.
Three quarters of our income next year will non taxable! Love it. We have converted about 2/3rds of our Rollover IRA accounts to Roths to take advantage of a year when our income will be lower for tax purposes.
My calculations involved figuring out how much of the remaining 1/3 our our rollover accounts should be converted this year, if at all. It looks like I should convert half of the remaining balance to benefit us in both tax years. The main benefit of spliting this way is to qualify us for the earned income tax credit in both years.
Of course, everything is just estimated right now, but I have to make the decision based on something!
Calculating into the Wee Hours
April 4th, 2010 at 07:13 pm
April 4th, 2010 at 10:50 pm 1270421441
I'm doing the Roth conversions, not becus I believe my tax bracket will be higher when I retire (I think I'll remain int he 25% tax bracket), but becus I believe taxes will go up in future years, so not having to worry about escalating taxes on those Roths will be a big peace-of-mind thing.
April 5th, 2010 at 02:00 pm 1270476037