I have a bunch of Apple shares in my Traditional IRA that are currently down about 15%. I’m thinking about doing a Roth conversion on some of my shares.
I will be in the 32% federal marginal tax bracket this year (no state income tax). Although that’s a pretty high tax bracket for Roth conversions, I was thinking that my net cost isn’t the 32%. It would be 32% - 15% (the amount my shares are down by) for a net cost of only 17%. Also, because I’m young (mid-20s), I believe my Apple shares are likely to double or even triple over the next 20-30y which would make tax-free growth even more enticing
Thoughts? Is 17% net cost worth it for a Roth conversion?
Submitted March 05, 2021 at 12:28AM by DogtorPepper https://ift.tt/3qgom8H
