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The post I'm 65 Years Old With $750k in an IRA. I'm Taking Social Security – Is It Too Late for a Roth Conversion? appeared first on SmartReads by SmartAsset. I'm 65 Years Old With $750k in an IRA.
For example, say that you are currently 65 and will take 3.7% from your portfolio each year. You would have likely after-tax earnings of: Combined Income = 0.5 * Benefits + Withdrawals = 0.5 ...
In tax year 2025, 75% will be exempt, and IRA income will be 100% exempt from 2026 onward. ... income tax on their retirement, but seniors ages 65 or older can ... you’ve held for over a year ...
In tax year 2023, the maximum amount allowed is $6,500. Beginning in tax year 2024, the limit is $7,000. [11] Beginning in 2002, those over 50 years old could make an additional contribution of up to $1,000 called a "catch-up contribution". [12] [13] Current [when?] limitations:
There may be a better way, though. Spreading the $1.2 million conversion over 10 years at $120,000 per year puts you in the 22% tax bracket in tax year 2023 after taking the standard deduction ...
Assuming you earn 7% a year and convert $132,000 each year, in eight years your IRA will be almost empty. Going forward, any Roth withdrawals you do choose to make will be tax-free.
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