Author Topic: Mad Fientist nails it again: Roth IRA Horserace.  (Read 37596 times)

milesdividendmd

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Re: Mad Fientist nails it again: Roth IRA Horserace.
« Reply #100 on: August 13, 2014, 05:48:40 PM »

I would just add to your summary:

6.  The horse race can make less of your funds subject to required minimum distributions, which may in turn increase your likelihood of qualifying for 0% tax liability for purposes of the above points.

+1 on the importance of avoiding RMDs with the Roth.

Glad you liked the exchange ARS. I learned a bunch from it and enjoyed it too.

Also there is the elegance of an almost guaranteed triple tax free maneuver when you put in pre tax money to an 401k and roll it into a Roth (tax free) which almost guarantees that you will pay no taxes on growth or distributions as long as you are alive.

Granted if your income is low enough it is really no gain since you are not taxed on LTCG or dividends anyway.

But I can see this law changing in tax reform before Roths ever become taxable.








not_a_trex

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Re: Mad Fientist nails it again: Roth IRA Horserace.
« Reply #101 on: August 13, 2014, 07:27:56 PM »
Maybe also add that if your AGi is so high that you do a Backdoor Roth transfer anyways, then you aren't missing out on anything?

milesdividendmd

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Mad Fientist nails it again: Roth IRA Horserace.
« Reply #102 on: August 13, 2014, 09:19:16 PM »
Maybe also add that if your AGi is so high that you do a Backdoor Roth transfer anyways, then you aren't missing out on anything?

Please flesh this out. I don't understand your point.
« Last Edit: August 13, 2014, 09:22:27 PM by milesdividendmd »

not_a_trex

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Re: Mad Fientist nails it again: Roth IRA Horserace.
« Reply #103 on: August 13, 2014, 10:25:53 PM »
I thought we were summarizing this thread and the article. So if someone were to come across the summary they wouldn't have to read either. Maybe I misunderstood the point of the summary.

My point was that if your AGI is higher than a certain point you can't make deductible contributions to a TIRA. So the best IRA related transaction you can do to minimize taxes is do a backdoor Roth with non-deductible TIRA contributions into a Roth IRA.

arebelspy

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Re: Mad Fientist nails it again: Roth IRA Horserace.
« Reply #104 on: August 14, 2014, 08:40:53 AM »
Good point.
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