Hi! I have questions about tax implications on Roth IRA Conversion. Let's assume I have about $300K in my TSP account, and I want to transfer the amount to my Roth IRA at the age of 60 years old. Let's assume my income for the year that I make the transfer is about $24K. Let's further assume the current tax brackets would remain the same
. Would you say I'd pay this much of taxes on the transfer?
•chances are my taxable income would be ($24K+$300K)= $324K
•then I'd be in the 35% tax bracket
•then my tax liability would be $324K*.35 = $113,400
•plus state income tax on the amount $324K?
Thank you.
[TABLE="width: 1400"]
[TR]
[TH="align: left"]Rate[/TH]
[TH="align: left"]For Single Individuals[/TH]
[TH="align: left"]For Married Individuals Filing Joint Returns[/TH]
[TH="align: left"]For Heads of Households[/TH]
[/TR]
[TR="bgcolor: #F2F2F2"]
[TD]10%[/TD]
[TD]Up to $9,950[/TD]
[TD]Up to $19,900[/TD]
[TD]Up to $14,200[/TD]
[/TR]
[TR]
[TD]12%[/TD]
[TD]$9,951 to $40,525[/TD]
[TD]$19,901 to $81,050[/TD]
[TD]$14,201 to $54,200[/TD]
[/TR]
[TR="bgcolor: #F2F2F2"]
[TD]22%[/TD]
[TD]$40,526 to $86,375[/TD]
[TD]$81,051 to $172,750[/TD]
[TD]$54,201 to $86,350[/TD]
[/TR]
[TR]
[TD]24%[/TD]
[TD]$86,376 to $164,925[/TD]
[TD]$172,751 to $329,850[/TD]
[TD]$86,351 to $164,900[/TD]
[/TR]
[TR="bgcolor: #F2F2F2"]
[TD]32%[/TD]
[TD]$164,926 to $209,425[/TD]
[TD]$329,851 to $418,850[/TD]
[TD]$164,901 to $209,400[/TD]
[/TR]
[TR]
[TD]
35%[/TD]
[TD]
$209,426 to $523,600[/TD]
[TD]$418,851 to $628,300[/TD]
[TD]$209,401 to $523,600[/TD]
[/TR]
[TR="bgcolor: #F2F2F2"]
[TD]37%[/TD]
[TD]Over $523,600[/TD]
[TD]Over $628,300[/TD]
[TD]Over $523,600[/TD]
[/TR]
[TR]
[TD="colspan: 4"][/TD]
[/TR]
[/TABLE]
