Holy Cow Town, as Phil Jackson used to say. Did you mean to write about Sacramento, the tax capital of California?I follow your logic and agree with the numbers you have so (painstakingly) calculated. Yes, it's a bit of a circular calculation. I will broach a further question - why are you throttling back on the Roth conversion here? The RMD for the inherited IRA is a minimum, not a max! Make your numbers cleaner, convert $10K of your regular IRA to Roth, then withdraw $5K, withhold 72% ($3.6K) for IRS, 27% ($1.35K) for Sacrament, you keep the change (for example). Actually... I think you should consider looking years ahead, and do a combination Roth conversion and Inherited withholding to the max of the 24% bracket, before you end up on Medicare (and IRMAA) and well before (decades...) one of you is filing single. Think big!
Statistics: Posted by VanGar+Goyle — Sat Jan 04, 2025 11:40 am