Well I’m not sure that I personally thought corporate taxes needed to come down. But at the time I think that many proponents were envisioning a lesser cut. If there are examples of how the big cut helped the economy, I’d be interested to read more about it.
No idea if the source is biased or not. They do quote Jason Furman from Obama administration conceding the trump tax cuts worked as intended. They also quoted James Freeman from WSJ that 2017 tax cuts greatly benefitted the economy.This is more broad than corporate tax cuts. For corporate tax cuts, from @bluebayou post
…“the fall in total corporate tax revenue from the tax cut is close to the static effect.”
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Bringing the thread back to the subject…
We are meeting with our financial planner/advisor on Tuesday. 2023 was the lowest income year we have ever had, and we are contemplating converting some amount to a Roth. We have a tax credit for solar panel purchase so I doubt we would owe any additional federal or state taxes. This is going to be our question.
Stay tuned!
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Yes, the intention was to cut taxes for big business and the richest individuals, so working as intended is no surprise.
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Smart to take advantage of a low income year for Roth conversion. We’ve have been working with our advisor to pick correct strategy for our situation.
In retrospect, I wish we had done late career Roth contributions. But at that point we didn’t understand the future picture as well and still liked the simplicity of all 401K money being the same “flavor”.
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Umm, no, that was not their conclusion, which is clearly described in the Abstract. (published social science, and all)
But back on topic: Thumper, beware of IRMAA. Most folks try to fill up their current tax bracket with conversions if they believe that their retirememt bracket will be lower.
CO Mom: late career Roth contributions are difficult as that is usually your highest earning years, and therefore highest marginal bracket. So don’t look back.
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LOL - It would be easier not to look back if hubby were not so keen on the Roth conversion. It causes some associated IRMAA pain, but fortunately at this point only x1 (by design) since I am younger. Being the keeper of the checkbook, I get to keep reliving the pain (he’s not yet drawing SS, so payment is via autopay). Also we’ve had to scrounge around for estimated tax payments. Next year I’ll rally for Roth conversion withholding even though there are good arguments against it since our main goals relate to RMDs down the road.
Exactly. We will still be below an increased Medicare premium…probably just this year with the Roth conversion we are considering.
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As for IRMAA, be prepared to battle that assessment when you retire as they look at past year(s) income. Took a bit of back and forth when H retired, but eventually got it removed. It is worth the effort.
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We need something stamped with a medallion guarantee and we are having the darndest time finding anyone to do it! Bank says they don’t have one, Schwab says only maybe have one in another office and would pursue only if its for something held by them (its stock from DH’s previous employer) and out other broker says his office doesn’t have one. How are you getting one?? Or are you?
I’ve had Medallion guarantee at my Dad’s credit union (for Computershare stock stuff) in NY and I think also my credit union for probate work.
We needed one to roll over an IRA and finally just gave up. Had to withdraw and then redeposit it ourselves. So frustrating.
Also could not get a medallion for rollover- had to just take the money out and pay the taxes (luckily a small amount). Our national bank did not have it (they had it in 2017 when I needed it for probate). Our neighbor was able to get it at his credit union.
I’ve been on Medicare for 7 years. I had to pay an IRMAA for the first 5. My husband was still working. It was fine…because…he was still working. We are not paying it now…but fully expect that to change when DH is required to take a RMD at age 73.
It’s part of our retirement planning.
Having a retirement income high enough to need to pay IRMAA is a first world problem, in my opinion. And we knew this would be the case and planned financially accordingly.
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No longer belong to a credit union.
You can try searching here: Medallion Signature Guarantee Website. Not a lot of places, and most likely need to have a connection with them - but at least this will give you a list to contact.
Strangely, UPS had no problem notarizing. And that was sufficient. So we did not need a medallion guarantee. When we got it, it was either from a bank or Fidelity. I can’t remember.