You have zero dollars in the brokerage account without huge gains?And I try so hard lol! The money from my taxable brokerage "may" be after tax. Could be cash or an asset with big fat CG that will be taxed when I sell it to pay the taxes. Yes, every penny I withdraw/convert/withhold from my IRA will be taxed. The money will be taxed eventually (my life +10), and that tax rate isn't dropping. I'm currently paying 24% Federal plus 9.3% CA - and that's likely to be the best tax rate on those top dollars in my life. Did you compare the "My Way" outcome to the "Low CP" option? That's pretty much the "nontaxable" choice, and the "after tax" value of my net worth is maximized. For people with IRA over $1M, it pays to plan ahead, do some sample tax returns (and I have, modeled years out) and see what the tax hit is. My assumptions are that the growth is the same for stock in whatever account. but the tax hit may be lowest NOW - whether I simply withdraw/withhold/convert the IRA. Same tax hit. Cheaper now.Your math is inconsistent. The money you send to the IRS from your taxable brokerage is after tax. The money you send from your Traditional IRA is before tax, and therefore itself subject to taxes. Withholding $90,000 from your IRA is not the same amount of money as paying $90,000 from your taxable brokerage.
What tax rate are you using for your IRA conversion?
Which calculators did you run these models on?
What did you use for portfolio performance numbers?
Did you measure the value of the total portfolio ($$) , adjusted for inflation, throughout the complete life of that portfoilio?
Statistics: Posted by smitcat — Thu Mar 14, 2024 6:51 pm — Replies 26 — Views 1615