TorchtheFlyingTiger

The catch is gains are taxed as regular income at conversion rather than at more favorable LTCG rates. It may be a good move but there will be tax consequences to factor in more so for a younger recipient. Im considering funding a couple years for my older teen since he won't have much growth to get taxed before converting. Also, the taxable income on conversion presumably counts as student income on FAFSA for student aid calculation.
Eta: maybe it's shielded from FAFSA but could trigger "kiddie tax" issues. Point is understand tax implications before fully funding. But taking the match is an easy win if available

One reason I quit buying individual stocks, never had a good exit strategy and tax aversion leads me to hold too long. Slowly divesting my positions by harvesting LTCG in zero bracket and gifting shares to family so they can sell in zero LTCG bracket.

Now I only buy individual stocks (rarely) in retirement accounts with no tax drag on reallocation.

Typically those engaging in bar fights are poors and thus essentially judgement proof. If this guy has assets they are vulnerable to civil suit. I'm not sure local government has any culpability unless actions get tied to his position of authority. I wonder if letting him go w no arrest play into whether the government has culpability.

quote:

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this guy is such a flaming a-hole and has said so many exaggerated terrible things about the Sheriff that he really had it coming

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IF this was what set him off, how can anyone here justify it? It's no.better than the violent respect/street beef culture we rail about. Even worse, the sheriff knows he has the law behind him and doesnt need to settle things in the bars/street. A well functioning society can't stand by and permit the same leader entrusted to wield the necessary state sanctioned violence of law enforcement to lash out in lawless violence to settle his own scores. Such impetuous fools must not be trusted with the reign of state sanctioned violence.

Speaking of simplified tax code, I'm currently listening to this podcast while at the gym. The Great Retirement Debate Podcast w Ed Slott If we ran the IRS our first big change

Side note, be aware tax exempt municipal bonds count towards MAGI for IRMAA calculation and may impact % of SS taxed as well as ACA subsidies.

You probably already onew this but it may help others. I only stumbled upon this fact a few days ago while exploring withdrawal/conversion strategies and IRMAA impact for an elderly family member. It was a blind spot since I don't hold tax exempt bonds, still years from IRMAA not using ACA.

There are cases for converting up bracket. For instance, to avoid widow penalty, future IRMAA, or anticipating higher future bracket due to inherited traditional IRA with 10 yr draw down.

Especially relevant if already in 22% bracket and only bumping into 24%.

My spouse runs household finances I manage investments, tax optimization and long-term planning. She knows what we have, where, and that we are nearly 100% index funds. That's about the extent of her interest in the matter.

I regularly bounce my optimization and withdrawal strategy ideas off her but she mostly just nods along. Yesterday I suggested we need to start spending down assets starting w $35k/yr. She said "what the hell are we gonna spend all that on?" then a moment later "the only thing I really want is a kitchen and bathroom remodel" :banghead:

I often drop little reminders of things that need to be done when I pass. (Contact VA, reallocate portfolio to less equity exposure, rollover from TSP, confirm brokerage has stepped up 50% of taxable portfolio, etc ) I doubt she will remember any of it in a crisis. I need to follow up with writing it all down. We just set up a trust and once assets are assigned that will at least provide some structure to the process.

Seems like this would be discussed more in FIRE/early retirement circles for those with large taxable portfolios used to bridge until 59.5. Maybe it's because it only works if you have most expenses covered from other sources otherwise too risky and need much higher balance? Or I'm just being foolish and/or missing something critical in my analysis.

I don't know about other but my brokerage doesn't require payments.
I just triple checked. The statement shows a "total amount due this period" that equals the monthly finance charge and a due date. It also shows zero payment, zero past due amount and zero late charges. I remember calling them awhile back when there was an extra fee charged once and they said it was a glitch and was already being removed.

I even just double checked the finance charge corresponded with the interest rate and didn't mask extra fees.

Oddly, Google says my broker does require payments but some others do not. Apparently IBKR treats it like a margin loan you can draw on but requiring no monthly payment. I guess I negotiated a better arrangement than I realized.