Personal Finance (Not Investing) • Missed Roth conversion

I thought I was reasonably smart, but I'm still not understanding. Anyone have another explanation of how she is no worse off despite paying more in tax?

You are focusing only on the initial variables - the $20,000 conversion amount and the $2,000 in taxes. The variables have now changed to $30,000 and $3,000, so you are comparing apples and oranges on the input side.

If she wanted to, she could still convert $20,000 and pay $2,000 in taxes. She is paying "more" in taxes, because she is now converting a larger amount.

As others have pointed out her end result is still the same. That is the number to focus on.

Statistics: Posted by Darth Vanguard — Fri Jan 10, 2025 4:51 pm — Replies 13 — Views 651

---