Roth Income at Retirement
Scenario: a client only contributes to Roth 401k, converts his existing IRA to Roth, and funds an NQ brokerage account that will generate qualified divs and capital gains.
At retirement, and assuming client has no w-2 reportable income or W-2 income less than 80.8K, would dividend and CG income not be taxed?
what would the effect on MAGI be?
Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2021-08-16 18:40
If married filing jointly, qualified dividends and LT cap gains are tax free if taxable income is less than 80,800. If doesn’t matter if there is W-2 income or not as long as taxable income is under this amount. The amount of SS income that is taxable will add to taxable income.