Quote:
Originally Posted by DimondAngels
Any retired CPA's out there who can help me out?
Basically on 3/11/20 I converted a traditional IRA acct. that was valued at $46K into a Roth IRA. Since March the account has grown to over $100K and I was told that if I put the original $46K back into a traditional IRA that there wouldn't be any taxes due.
Any advice would be appreciated. Kevin dimondangels@yahoo.com |
Just a note about a potential separate issue:
If you are on Medicare and the conversion threw you over the threshold for higher income, you will have to pay more for Part B and for the drug coverage premium.
Known as
IRMAA (income-related monthly adjusted amount), the added premium hits two years after the tax year in which your income crossed the line for the increase. This is an either/or amount. You either cross the income threshold or you don’t — and there are thresholds that follow the first one, as income increases.
The income the IRS uses is called MAGI (modified adjusted gross income). The income charts and premium increases can be found with a Google that will take you to Medicare.gov or ssa.gov for the official numbers.
My favorite accountant called it “getting your money out of its prison” when he talked about tapping into IRAs.
A good accountant can guide your decisions far more objectively than a run-of-the mill financial advisor. (I am neither of those things so my advice is worth exactly what you are paying for it.)
Break-Out Boomer