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ROTH ACCOUNT ????

Cdog

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but I don't need surgery...I own a milk cow business, building and every thing inside paid for, and multiple re deals that pay monthly comerical rental thats 10k per mp. and a house rental, I have brand new rv garage home in havasu paid for and one in vegas....... now here's the bad new... I'm sliding right under the 37% bracket... any withdrawals from a 401k will be horrible... I don't have a 401k.... my with does, it was packet to the max for 40 yrs... so about 1.3m as it sits.... she don't have to with draw till 2032.. she get a big retirement from the gas company where she worked for 38 yrs, she finally retired...next year I will for sure be in the 37% tax bracket.... more my question was if you start putting some in a roth, when the kids get the money it's tax free???? right???taking money out of 401k would be at 37% tax,... so my thought is to just let it sit....???? right or wrong.... but, the last thing I would pay some one to do with "MY" money is tell me what to do with it... starting from a kid on welfare and only going to the 9th grade, I think I did all right.... I had a fin. advisor tell me that I should put a mortage on my comerical and home property and put the money to work.... that was around 2006 or 7.....Next time I saw him he was renting a house... his got repoed...

You've done a kick ass job no doubt. I was reading through your initial post trying to figure out what you were selling. HAHA!

So congress just passed a law last year to tax and force liquidation of inherited 401k and I think IRA's. You'll have to look it up. They want all the future generations to been poor and taking hand outs.

A Roth conversion doest seem to be in your favor based on your current tax rate. Sounds like you need to consult an estate & tax planner.
 

LowRiver2

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There is a ton of misinformation on here. I do this for a living, 19 years deep.
Kind of like inmates telling Cops how to do Police
Work: what a concept?

Serious note, I’m open to critique of what I posted being wrong? I replied in regards to brief description of what it is.

Curious of a falsehood I posted?
 

DILLIGAF

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but I don't need surgery...I own a milk cow business, building and every thing inside paid for, and multiple re deals that pay monthly comerical rental thats 10k per mp. and a house rental, I have brand new rv garage home in havasu paid for and one in vegas....... now here's the bad new... I'm sliding right under the 37% bracket... any withdrawals from a 401k will be horrible... I don't have a 401k.... my with does, it was packet to the max for 40 yrs... so about 1.3m as it sits.... she don't have to with draw till 2032.. she get a big retirement from the gas company where she worked for 38 yrs, she finally retired...next year I will for sure be in the 37% tax bracket.... more my question was if you start putting some in a roth, when the kids get the money it's tax free???? right???taking money out of 401k would be at 37% tax,... so my thought is to just let it sit....???? right or wrong.... but, the last thing I would pay some one to do with "MY" money is tell me what to do with it... starting from a kid on welfare and only going to the 9th grade, I think I did all right.... I had a fin. advisor tell me that I should put a mortage on my comerical and home property and put the money to work.... that was around 2006 or 7.....Next time I saw him he was renting a house... his got repoed...
you seem to have done just fine.
 

2FORCEFULL

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Here's how to transfer funds to kids...... classic cars and boats with open titles ,add a few rvs ,,, you can rack up a couple million or so quick...
 

Christopher Lucero

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Here's how to transfer funds to kids...... classic cars and boats with open titles ,add a few rvs ,,, you can rack up a couple million or so quick...
what I have been doing is converting from a traditional IRA to Roth annually.
from my understanding of your situation, maybe this will work for you. my 2cents. good luck.
not to be gruesome, but one advantage left in the IRA system legislation is that a Roth can be passed to heris without step up conversion upon your exit. The other is that qualified distributions are free from tax.
your wife is scheduled for RMD in 2032, so you have a looong time to move all the assets into a Roth. hopefully she is filing separately so she can avoid your 37% rate by judicious small conversions over a long period. with a $1.3M nut, it seems like she will need to withdraw around $140k/yr, which with deductions should put her into around the 24% bracket. she will be paying taxes on the conversions along the way, but if you manage to get the whole enchilada into a Roth, you could then start getting the Roth positioned into a kind of dividend stream. let's say that 12 years from now the whole thing is converted and it's now $3M (which is a very conservative return estimate)...even with the most conservative 'annuity' approach that should buy about $12k/mo and since it is from a Roth, it is not taxed.
 
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RandyH

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Dont forget shiny metal collected over a lifetime. A great way to transfer wealth....Easily handed out before Estate and attorney fees. But hey, I am no expert. 😎
 

1fastsedan

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Kind of like inmates telling Cops how to do Police
Work: what a concept?

Serious note, I’m open to critique of what I posted being wrong? I replied in regards to brief description of what it is.

Curious of a falsehood I posted?
This wasn't directed at you. It was a generic to the entire post.
 

Halvecto

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....... now here's the bad new... I'm sliding right under the 37% bracket... any withdrawals from a 401k will be horrible... I don't have a 401k.... my with does, it was packet to the max for 40 yrs... so about 1.3m as it sits.... she don't have to with draw till 2032.. she get a big retirement from the gas company where she worked for 38 yrs, she finally retired...next year I will for sure be in the 37% tax bracket.... more my question was if you start putting some in a roth, when the kids get the money it's tax free???? right???......
If you can get $$ into Roth, this is correct. If you decide to convert Trad $$, do some math on breakeven scenarios. It's usually a time (how long will the Roth have to grow since your income tax on conversion becomes a current expense). Roth IRA contributions (capital) can be taken out after 5 years for those under 59 (I realize that doesn't effect you), without penalty or tax. Interest must stay in until after 59, or it is penalized. All distributions are tax-free, including to heirs. There is no RMD (required mandatory distribution) for the owner at 701/2, but an inherited Roth IRA does have the Inherited IRA RMD rule. Although it is not taxable, it must be distributed.
 
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DILLIGAF

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what I have been doing is converting from a traditional IRA to Roth annually.
from my understanding of your situation, maybe this will work for you. my 2cents. good luck.
not to be gruesome, but one advantage left in the IRA system legislation is that a Roth can be passed to heris without step up conversion upon your exit. The other is that qualified distributions are free from tax.
your wife is scheduled for RMD in 2032, so you have a looong time to move all the assets into a Roth. hopefully she is filing separately so she can avoid your 37% rate by judicious small conversions over a long period. with a $1.3M nut, it seems like she will need to withdraw around $140k/yr, which with deductions should put her into around the 24% bracket. she will be paying taxes on the conversions along the way, but if you manage to get the whole enchilada into a Roth, you could then start getting the Roth positioned into a kind of dividend stream. let's say that 12 years from now the whole thing is converted and it's now $3M (which is a very conservative return estimate)...even with the most conservative 'annuity' approach that should buy about $12k/mo and since it is from a Roth, it is not taxed.
chris….you are always…well…some would say….ahhhh hmmmm….you talk too much…but I just say can you please make your posts more consolidated. Lol

just taking a cheap shot while having beers poolside. Didnt even read it as I scrolled and scrolled and scrolled. Haha
 

Christopher Lucero

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chris….you are always…well…some would say….ahhhh hmmmm….you talk too much…but I just say can you please make your posts more consolidated. Lol

just taking a cheap shot while having beers poolside. Didnt even read it as I scrolled and scrolled and scrolled. Haha
cool. thanks for the suggestion. hope you're doing well after the repairs.
 

mjc

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What all this boils down to is you can not get out of the taxes.
 
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