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Can We Retire Soon? Retirement Spitball Analysis - 384

Your Money, Your Wealth

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Are Roth Conversions Taxed at 12 %?

If you already have 20 thousand dollars of long term capital gain and or qualified dividends, which is taxed at zero? When you're in the 12 % bracket, let's say alreaty have it, right? But then you should stop, because if you add more wroth converson on top of that, that dollar roth conversion will be taxed at 12%. And it's going to push your capital gains up. Your fector rate is actually 27%, because you're being taxed on the roth con esion that got you over that,. If there's no other income, that's fine. You would want to stay all income in that 12% tax bracket for your dividends and

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