Author Topic: Help me understand the Roth conversion pipeline idea and its benefits  (Read 30163 times)

Fuyu

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Re: Help me understand the Roth conversion pipeline idea and its benefits
« Reply #50 on: January 20, 2015, 02:54:36 PM »

HI and CA of course look the worst. I'm sure some of the others work out to a pretty low rate of a couple percent for a modest income.

Why would CA be one of the worst state once you reach FI for taxes?

Because CA has a top state tax rate of 12.3%. I have no idea what the brackets look like though, but unless it's extremely progressive it doesn't sound great (and CA is expensive as well)


I would consider CA to have extremely progressive tax brackets. Assuming taxable income of 20k in 2014, the CA tax would be less than 1% of that amount. Totally failed to think about the cost of living though...