Comments

  1. Nice one Todd, simple – but i do not believe I have read that before.  I will file it away for the eventual lay-off!
     

    •  @dia385mond Well, hopefully the buyout occurs before the layoff… but yes, that is why I shared it. I’ve never seen anyone else write about this subject yet it is an incredibly effective strategy.

  2. This is a great post.  Thanks for sharing!  The jigsaw puzzle analogy and the opening up oneself to see the opportunity of each particular investment tool is a definite goal and direction I can set for my grey matter.  It’s astonishing how I never gave much thought to tax considerations (simple lack of education) for the first some odd decades of my life.

    •  @Todd23 Thanks Todd! Yes, taxes are usually your single biggest expense when you add them all up – even bigger than housing.
       
      BTW, great name you got there 🙂

      •  @Financialmentor Ditto.  Oddly enough, I don’t find many of us out and about in the world.

  3. It sounds like I may be in a similar situation, Todd: sold my business in 2010. While I had no W-2 income in 2011, I did have income from investments (capital gains, dividends, etc). Does that mean that the zero-tax Roth conversion won’t work for my situation? Or is there something I don’t understand? Could you give, or point me to a simple example to answer the question: how much in investment gains can I have while still doing a zero-tax Roth conversion?

    •  @chaddox I’m reticent to put specific rules on this post because the government changes them regularly. Also, personal circumstances vary widely with little details changing things considerably. I would encourage you to see an accountant who can work up the numbers (assuming you bring all your info) in considerably less than hour. Also, you can look online at IRS.gov for the latest rules.
       
      Hope that helps…

  4. Interesting idea. But you need to do it when you’re younger. Once in or near retirement I am not sure if it makes sense.

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