Year end tax planning

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Convert3

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It’s time to do whatever tax strategies we can to help ourselves for 2019. We’re rolling some of our traditional IRA money into a Roth IRA this month. We’ll take a big tax hit, but hopefully will pay off in the long run.
We can’t contribute to an IRA or 401k because we’re retired.
We are reviewing our donations for the year to see if we should add some more for that deduction. Between healthcare costs, charitable donations and property taxes we can itemize this year.
Anybody else doing tax planning? Any suggestions on other things to consider?
 
Convert3 said:
It’s time to do whatever tax strategies we can to help ourselves for 2019.
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When we wait until the close of the last quarter of any tax year to plan for the closing tax year, we’ve already lost the battle.

I learned long ago to make plans the last quarter of the year for the next tax year, and then check in on them to see what changes need to be made quarter by quarter.

Just finished my 2020 plan during Thanksgiving week.
 
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So you tell me I’ve already lost the battle (which I have), then to plan ahead for the next year and make corrections quarterly. Not much detail after being critical of me.
 
Convert3 said:
It’s time to do whatever tax strategies we can to help ourselves for 2019. We’re rolling some of our traditional IRA money into a Roth IRA this month. We’ll take a big tax hit, but hopefully will pay off in the long run.
We can’t contribute to an IRA or 401k because we’re retired.
We are reviewing our donations for the year to see if we should add some more for that deduction. Between healthcare costs, charitable donations and property taxes we can itemize this year.
Anybody else doing tax planning? Any suggestions on other things to consider?
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US tax laws changed this year with respect to ROTH contributions. You cannot modify your ROTH conversion after it is made anymore so make sure it is accurate or you may pay more taxes than necessary.
 
While that doesn’t apply to us, I’m glad you brought it up. A lot of folks on ACA plans have to watch their income for subsidies.
 
Convert3 said:
Not much detail after being critical of me.
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Who was critical of you, specifically?
If you go back and read my post, I used the pronoun “we” and the “we’ve” and not “you”, meaning I have done the same myself…I think you are being a little too sensitive.

You asked for help, in the initial post, and in a response to mine, and I offered it, but if you are not open to suggestions, I don’t think that is any reason for accusing me of being critical of you.
 
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Convert3 said:
While that doesn’t apply to us, I’m glad you brought it up. A lot of folks on ACA plans have to watch their income for subsidies.
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I am thinking of the US Federal Tax recharacterization of a contribution to a traditional or Roth IRA which allows you to treat a regular contribution made to a Roth IRA or to a traditional IRA as having been made to the other type of IRA. This is no longer possible, so accuracy is more important to avoid more taxes than expected. A Roth IRA conversion made on or after January 1, 2018, cannot be recharacterized.
 
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I’m beyond the IRA contribution part of my life. I’m planning to do my first rollover from a traditional IRA into my Roth. I’ll likely lose my medical deductions because of it.
 
Convert3 said:
I’m beyond the IRA contribution part of my life. I’m planning to do my first rollover from a traditional IRA into my Roth. I’ll likely lose my medical deductions because of it.
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Before, the amount converted from a Traditional IRA to Roth IRA could later be recharacterized as though it never left the Traditional IRA, making it possible to correct a conversion amount error.
 
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