130 - Should I Do Roth Conversions in Low Income Years?
Episode description
Scott and James discuss if you should do Roth Conversions in years where income is relatively low.
Listener Question
I am currently single and maxing out my 401k. In two more years I'll have been doing this and my Roth IRA for four years total. I plan on going back to training for one year and at that point it will drop me from the 37% tax bracket to 22%. My question is I currently contribute to a Roth 401(k) and I plan to stop doing that and just contribute fully to my 401(k), but in the year I earn less move everything to my Roth IRA, is this the right decision or should I keep contributing part of the Roth 401(k) and regular combined?
Planning Points Discussed
- Retirement Planning
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
3:57 - Retirement Contributions
7:07 - Moving Funds To Pre-Tax
10:27 - Contribution Limits
12:40 - Additional Savings
16:51 - Roth Conversions
18:47 - Tax-Gain Harvesting
20:09 - Aligning Your Financial Goals
LET'S CONNECT!
James
Scott
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