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Business, Economics, and Taxes: Capitalism. Yay? >=(

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Kepler said:
a.k.a. a backdoor Roth?

(IINM they are about to kill them.)
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I think what she is describing is just a straight forward IRA conversion to roth. You will pay taxes on any profits on the traditional IRA.

A backdoor roth generally is used to describe contributing to a traditional IRA, and immediately converting to a roth. No profit, no tax implications. However this can only be done if you do not have any balance in your traditional IRA by the end of the year otherwise taxes can get messy with pro rata rules.

I will believe the backdoor roth is dead when something is actually signed. There is talk of phasing out other roth conversions and some of these proposals are means tested. Again, I probably would not make drastic changes to one's plan on proposed legislation.
 
WisconsinWildcard said:
I think what she is describing is just a straight forward IRA conversion to roth. You will pay taxes on any profits on the traditional IRA.

A backdoor roth generally is used to describe contributing to a traditional IRA, and immediately converting to a roth. No profit, no tax implications. However this can only be done if you do not have any balance in your traditional IRA by the end of the year otherwise taxes can get messy with pro rata rules.

I will believe the backdoor roth is dead when something is actually signed. There is talk of phasing out other roth conversions and some of these proposals are means tested. Again, I probably would not make drastic changes to one's plan on proposed legislation.
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Correct. I’m converting 10k into Roth so I basically owe 30% taxes on that, which is why I called my accountant to make sure nothing would get too ugly. I could covert more if the IRA but I can’t afford the taxes if I go higher than 10k.
 
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Deutsche Gopher Fan said:
Kind of but my accountant today said it’s not really. That involves zeroing out all IRAs- I’m simply doing a one time conversion.

yes they may kill it, I wish they’d make an exception for people who are under 200k or something but I won’t lose sleep over it. At least I’m getting 10k into a Roth account
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I think the current legislation would still allow roth conversions if income is under 400k. It is a moving target but it does not sound like they would outright ban all conversions.

"An additional rule had aimed to prevent Roth conversions of any kind made by anyone making more than $400,000, or any couple making more than $450,000, by 2032."

https://www.forbes.com/advisor/retirement/congress-to-end-backdoor-roth-conversions/
 
WisconsinWildcard said:
I think what she is describing is just a straight forward IRA conversion to roth. You will pay taxes on any profits on the traditional IRA.

A backdoor roth generally is used to describe contributing to a traditional IRA, and immediately converting to a roth. No profit, no tax implications. However this can only be done if you do not have any balance in your traditional IRA by the end of the year otherwise taxes can get messy with pro rata rules.

I will believe the backdoor roth is dead when something is actually signed. There is talk of phasing out other roth conversions and some of these proposals are means tested. Again, I probably would not make drastic changes to one's plan on proposed legislation.
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Thank you.
 
Handyman said:
Jon Stewart destroying him on The Daily Show should have ended his career.
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That is still the most brutal killing I have ever seen on television. If a person held any teevee financial person in the slightest esteem after that, there was no help for them.

Stewart didn't just end Cramer, he ended the entire con for anybody with an IQ north of 50. I assume CNBC, Fox Business, and Bloomberg have not had even a single human viewer after that. They merely buy their way into airports or corporate lobbies.
 
https://twitter.com/TPAIN/status/1476032631255060490

FHvr2u_X0AMzeQF
 
Kepler said:
LOL. We're officially rich by fiscal policy standards. And I agree. Tax us more!
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Yeah I never quite get the panic of the (relatively) rich when some of the proposals are being thrown around. If I make over 400K, I probably should not be the one doing a backdoor roth. Same thing with RMDs being in the highest tax bracket. If I end up having that high of RMDs, I have already won the game and have the first worldliest of first world problems that my 4th, or 5th 100k/year in retirement/year will be taxed at a high rate.

I feel the same way with estate taxes or the mandatory withdrawal of roths/retirement accounts. Sign me up for having those be my problems.
 
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WisconsinWildcard said:
Sign me up for having those be my problems.
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Exactly. We won the game. How can anybody argue with a straight face we can't afford higher taxes when there are people without even the most basic necessities?

Greed is amazing. It must be an old gorilla gene, like hyperventilating over pew pews. CRISPR it out.
 
Kepler said:
Exactly. We won the game. How can anybody argue with a straight face we can't afford higher taxes when there are people without even the most basic necessities?

Greed is amazing. It must be an old gorilla gene, like hyperventilating over pew pews. CRISPR it out.
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Good luck. That's probably in the lizard portion of your brain. Not sure I'd tinker with the ECU when we just discovered how to make bronze.
 
Tesla recalls 475k cars. Something about a latch and hood could fly up while driving.

interesting timing after that drama Queen sold a bunch of stock
 
There is zero chance I ever buy a Tesla. For all the carbon coming out of the air because of EVs, musk is putting that back and then some with NFTs and crypto.
 
dxmnkd316 said:
There is zero chance I ever buy a Tesla. For all the carbon coming out of the air because of EVs, musk is putting that back and then some with NFTs and crypto.
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Toyota is investing even more now into electric. Maybe that’s the direction I go, I dunno. Anyone but Tesla
 
I originally was going to get a Tesla before the Pandemic hit. Then as I researched more and realized that most motor companies are going to be putting out way more electric vehicles so I had no issue waiting it out. By the time I can afford it again I can buy from a real car company something cheaper than a Tesla that gets similar mileage.

Elon Musk is the clincher though. His sycophants are bad enough but the guy is A1 douchebag and fuckwit on top of it. His COVID opinions are jack crap and pretty much every thought he has in general is so wrongheaded and ridiculous it borders on absolute ignorance. I won't buy anything that clown sells. I was lucky to make money off one of his grifts I won't ever take that chance again. He is just a less interesting Jordan Belfort.
 
Deutsche Gopher Fan said:
Toyota is investing even more now into electric. Maybe that’s the direction I go, I dunno. Anyone but Tesla
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I've owned a few Toyota's in my life and have been happy with all of them. However, I'll never buy a Toyota again after hearing this news.

Toyota has donated more than any other company to support members of Congress who voted against certifying the 2020 presidential election results, according to a report on political giving.
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