Tax amount owed at time of converting traditional IRA to Roth IRA
HELP
How do I find out the rate (I will be taxed) BEFORE I withdraw/transfer from my Traditional Ira to my Roth Era? And or what is the best way ($) or time to convert my Ira to a Roth. I would like to transfer without having to pay a high tax (ha any tax). How do I find out the percentage/rate before I start transferring funds to my Roth account? I have ask my HR department when I worked, and my accountant, and the bank where my accounts are and others —– no one knows!!!!!
I have been seeking this answer for over 4 years or longer.
I am 62 years old.
I do not work.
I only have a monthly Social Security check.
Yes, I am married
Yes, my husband works.
HELP !!!!
Sincerely,
Shelia
256-723-2697
Permalink Submitted by Alan - IRA critic on Mon, 2019-08-19 23:31
If your accountant also does your taxes, he should be able to estimate the tax and the marginal rate that will apply to your conversion. While that will tell you the additional tax, you also need to determine how marginal rate for the conversion compares to the estimated marginal rate when you both are retired. You generally would not want to convert any amount that is taxed higher than your expected marginal rate later on if you did not convert. Note that a conversion can result in taxes on SS income that is not otherwise taxed, but it also may reduce the amount of SS subject to tax later on. You have to be more careful now with the amount you convert because you can no longer recharacterize (undo) a conversion after it is done.