Hello /investing,
I have had an idea recently that I am considering taking action on, but I'm not entirely sure how it will affect my taxes. I currently have about 20k in mutual funds in my regular, non-tax advantaged brokerage account. What would be the affect if I were to liquidate 5,500 a year and dump it into my roth IRA at the beginning of each year?
One advantage of this in my opinion, is that if the Roth is already maxed, I no longer have to worry about monthly contributions. Some months are better than others and I would be able to invest my left over income as I see fit, or use it on weekend trips/vacations. But I don't know how harshly this will affect my income/capital gains taxes. This year I (un)fortunately had enough net loss on SNAP to retroactively max 2017, with a little extra to spill over into 2018. I was thinking about outright maxing 2018 while I am at it.
Another advantage to doing this, is that I have the VGSLX REIT which I recently learned I am paying taxes on the reinvested dividends. If I was able to move that over into the Roth I would no longer pay gains tax on those dividends. I would like to gradually merge 20k worth of VGSLX, but how badly will doing this affect my taxes for 2018?
Submitted January 16, 2018 at 09:56AM by filli1aj http://ift.tt/2D9qIib
