It looks like we're going to have some untaxed space and I am considering doing a Roth conversion up to the ceiling. I've never done one before since we tend to max out deductions but this year our self-employed income dipped a little. Also, do I have to do this before end of year, or by April 15, 2019?
We are married filing jointly and we each own businesses. I am 56 so I get the catch-up contributions on HSA and retirement accounts. We have been putting into Roth instead of tIRA once we realized we would have space.
Projected net income: $59,000
Deductions:
Health Insurance $13,868
HSA $7900
401K $30,500
tIRA $2,300
Total deductions: $54,568
2018 Roth contributions: $9,700 + Roth 401k $1,000= $10,700
So, $59,000 plus $10,700 minus 54,568= approximately $15,132 of taxable
My thinking is to do just under $9,000 in Roth conversions to stay below our standard deduction of $24,000 and pay no income tax on that conversion. Am I missing something? Thanks for any input.
eta: sorry for the edits, just remembered dividends!