Tax Notes - fcrimins/fcrimins.github.io GitHub Wiki
On IRAs
- Traditional IRA - pre-tax, no taxes paid up front
- Roth IRA - post-tax, pay taxes up front and then grow tax free, no taxes at redemption
- income caps in order to contribute to Roths (we're too high for '16)
- also can't contribute to Roth if you have any money in a pre-tax IRA, even if it's from 10 years ago
- 2017 plan
- since our income will be low this year, it's a good year to convert into a Roth (and be taxed)
- is this what Howard referred to as a "backdoor Roth"?
- if we convert all of Michelle's IRA, then she no longer has a pre-tax IRA and so can make contributions in the future
- the lowest income tax bracket of 15% extends up to 75k (for a couple, or individual?)
- talk to Howard in November