Defusing a Future Tax Bomb With Roth Conversions

[@DaveSchmrdr75]

Happy New Year Andi, Joe and Big Al. I enjoyed listening and learning for the whole year.

[@YourMoneyYourWealth]

Thank you and Happy New Year to you, Dave! Here's to more laughing and learning and making fun of finance in 2025!

[@Bondbeer]

Always good video. I would be inclined to not convert in 24% to avoid future 24% bracket due to the time value of money but I do see the rational for doing so, including concerns about future tax rate increases and the widow tax. The question is are you already in the 24% in the future before RMDs or will some be taxed in the 22% bracket? What is driving that future tax bracket? Can you reallocate some investments to assets such as municipal bonds or MLPs or growth stocks that don’t throw off annual income.

[@Kep19901]

Whats a kitty tax? 20:10

[@DaveSchmrdr75]

I think that is the penalty given when someone claims their feline as a dependent on the 1040. :) Actually it is the Kiddie tax. It has to do when your child earns money and how it is taxed. I'll leave the details to the experts, which I am not.

[@YourMoneyYourWealth]

Thanks for the question! There's a brief explanation of the kiddie tax in this audio episode from last year. kzbin.info/www/bejne/i3fNZ4ylgbKna5o If you have any other questions let me know and I'll get them to Joe and Big Al! - Andi

[@thomaslyens7981]

For the spitball on Alex and spouse, shouldn’t you also consider the advantages of doing conversions prior to IRMAA look back years? Or is this couple not required to add Medicare assuming at least one is a Federal retiree?

[@YourMoneyYourWealth]

Thanks for your question! Joe and Big Al addressed it here: kzbin.info/www/bejne/e5SvZWSPr9tgaLc