I have a bit of a situation going on here and I was hoping to see if I could get some advice on where to start. I am a 27 (soon to be 28) year old who has been working for 4 years. Since I graduated college, I was able to contribute to a really nice 401K plan with my first company and they had a really nice company match. I worked there for about 3.5 years and contributed into a traditional 401K and a Roth IRA as well. Since then, I have left the company and relocated to a new state where I am now eligible to contribute to my company's 401K (the match isn't nearly as nice but I am grateful to have one). When I moved out here, I went ahead and moved my 401K into an accumulation IRA with my bank and I went ahead and moved my Roth into an accumulation Roth as well.
My intention was to convert my traditional IRA into a Roth and roll it into my Roth account with my bank. Once all the money was in my Roth with my bank, I was going to go ahead and start doing contributions to ensure that I hit the Roth max allowed per year. Aside from maxing out my Roth, I also intend to contribute about 12% of my salary to my work 401K.
With all that being said, this is where I'm stuck.
When I convert my traditional into a Roth, my taxable income is going to go up for 2019. However, since I am now going to start contributing to my work 401K, my taxable income is going to be going down for 2019 as well. The goal here is to determine how much of the traditional I should convert (if not all of it) and how much of the traditional should be withheld through my bank so that I could pay taxes on it in 2020 (my bank is asking me what % should I withhold to cover the federal and state taxes). I have been doing research online but I am still slightly confused so I was hoping some of you guys could come to my rescue and advise me on where I should start looking for additional online resources.
THANKS!
Submitted May 30, 2019 at 07:16PM by JarvisME http://bit.ly/2wvGi61
