Comments on: A Roth Roundup

By: V. F.

V. F. — Thu, 25 Feb 2010 23:59:32 +0000

Ed Slott’s advice re the Medicare Premium as I call them “surcharges” as income crosses a threshold level of $85,000 for a single senior or $170,000 is right on the mark. Keep in mind the Senate-passed healthcare legislation (assumed to be part of Obama’s bill now) would FREEZE THE THRESHOLD LEVELS FROM 2010 through 2019. Take a look at what your income might have been 10 years ago and add that to what a senior might be withdrawing from IRAs etc. (converting to Roths) and you will find many more seniors caught in a trap of paying “Medicare Part B premium surcharges.” As Ed Slott indicates based on the income, the premiums or increases might be as much as $6000 per year.

Then add to all of this the benefit of reducing the size of one’s estate (by converting to Roths) if one is unfortunate enough to live in NY where 16% of the income taxable or nontaxable after the first $1 million will hit estates and therefore beneficiaries of those estates — our sons and daughters.

By: Daddy Paul

Daddy Paul — Fri, 29 Jan 2010 21:07:43 +0000

Good read.
My rules for a Roth do it in a year when your income is down or the market is down. I did it in 2002 and in early March 2009. RYLPX has nearly doubled since the March conversion. Now it is my gain not uncle sams.

By: JOE

JOE — Sun, 24 Jan 2010 15:40:56 +0000

We don’t? I was just getting started. Stay tuned.

By: Financial Samurai

Financial Samurai — Sun, 24 Jan 2010 15:18:05 +0000

Very nice round-up Joe! I’ve read half of these, and I have to say the discussions we had on my post, largely due to your very thorough commentary were the most interesting!

I’m glad we don’t have to talk about the ROTH conversion anymore.