Hoping to do Backdoor Roth IRAs for wife and I, but we're financial n00bz. We have a rollover IRA with ~$48k and a traditional IRA with ~$9k in Vanguard. Our combined income is ~$213k, hence tax bracket is 24%.

Is this assumption correct:

If we convert the 9k to a Roth IRA, that will add 9k in income, hence tax will increase by ~$2160? (9k x .24)

Similarly, if we did the same with the 48k rollover it would increase tax by $11520? (48000 x .24)

We currently have the discretionary income to afford both of those, but how do I determine if that makes more sense than converting the 48k IRA to an individual 401k?

Thanks!

Is this assumption correct:

If we convert the 9k to a Roth IRA, that will add 9k in income, hence tax will increase by ~$2160? (9k x .24)

Similarly, if we did the same with the 48k rollover it would increase tax by $11520? (48000 x .24)

We currently have the discretionary income to afford both of those, but how do I determine if that makes more sense than converting the 48k IRA to an individual 401k?

Thanks!

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