Roth conversions and stimulus payments

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
kate1234
Posts: 195
Joined: Sun Aug 17, 2008 4:19 pm

Roth conversions and stimulus payments

Post by kate1234 »

For 2020 I modulated our Roth conversions to keep our taxable income below $150K, to be sure we received the full amounts of the stimulus (which we did). We do not have dependents so the child tax credit won't apply to us.

I am now planning the 2021 Roth conversion and am mindful of the MAGI thresholds for IRRMA and the tax brackets based on taxable income. Are there other income thresholds I need to be mindful of?
BigJohn
Posts: 2627
Joined: Wed Apr 02, 2014 11:27 pm

Re: Roth conversions and stimulus payments

Post by BigJohn »

Here’s a long discussion on that topic. Many/most may not apply in your case but good to be aware and check them all.

viewtopic.php?p=2570101#p2570101
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
User avatar
FiveK
Posts: 15742
Joined: Sun Mar 16, 2014 2:43 pm

Re: Roth conversions and stimulus payments

Post by FiveK »

BigJohn wrote: Sat Sep 25, 2021 7:35 am Here’s a long discussion on that topic. Many/most may not apply in your case but good to be aware and check them all.

viewtopic.php?p=2570101#p2570101
+1

The estimation tool mentioned in the last post of that thread has been updated for 2021 tax laws (at least as they are today...) and can show your marginal rate changes for whatever income range you wish.

The important "trigger" income levels 2021 - Early Retirement & Financial Independence Community has a good static list.
Topic Author
kate1234
Posts: 195
Joined: Sun Aug 17, 2008 4:19 pm

Re: Roth conversions and stimulus payments

Post by kate1234 »

That link to

https://www.early-retirement.org/forums ... 06300.html

is spectacular and much more thorough and up to date than the thread on the Bogleheads site.

I am working my way through the personal finance toolbox

https://www.bogleheads.org/wiki/Tools_a ... ce_toolbox

It is daunting but so far so good.
Post Reply