Say you need to do a big tax event. Like a Traditional IRA->Roth conversation or selling assets in taxable account to buy a house.
Assume you are retired and have a small income (from investments) and have some year to spread this out. What is the best way to model this out?
For example, on one extreme, you can do it all at once, but a $2M conversation is obviously not tax efficient. But if you only do $20K a year, it'll be tax efficient, but take 100+ years. So in between those two extremes, there should be a "sweet spot" between taxes and time?
In my case, I need to consider Federal taxes, state taxes and ACA subsidies. In addition need to take things like standard deduction and child care tax credit into account and carry over capital losses.
Is there a website or calculator that already models this out? If not, any hints on best way to do this in excel? Maybe have 3 curves (federal, state, aca) and then a 4th curve that sums those to find the best number based on time parameters?
In addition to one time events, it would be nice to use a calculator like this for yearly withdraws in RE, to get a gauge on tax implications. submitted by /u/ZjY5MjFk
[link] [comments]
Assume you are retired and have a small income (from investments) and have some year to spread this out. What is the best way to model this out?
For example, on one extreme, you can do it all at once, but a $2M conversation is obviously not tax efficient. But if you only do $20K a year, it'll be tax efficient, but take 100+ years. So in between those two extremes, there should be a "sweet spot" between taxes and time?
In my case, I need to consider Federal taxes, state taxes and ACA subsidies. In addition need to take things like standard deduction and child care tax credit into account and carry over capital losses.
Is there a website or calculator that already models this out? If not, any hints on best way to do this in excel? Maybe have 3 curves (federal, state, aca) and then a 4th curve that sums those to find the best number based on time parameters?
In addition to one time events, it would be nice to use a calculator like this for yearly withdraws in RE, to get a gauge on tax implications. submitted by /u/ZjY5MjFk
[link] [comments]