Announcement

Collapse
No announcement yet.

Roth conversion impact on IBR?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Roth conversion impact on IBR?

    Technical question here - I have an IRA ~$150k, and have been researching the option of doing a Roth conversion now while my tax bracket is low.  Looks to be a good move for me.  However, I am also considering doing IBR (PAYE or REPAYE) for my student loans.  The programs base the payment on discretionary income.  My question is this, will the ordinary income I will have to claim in doing the conversion impact my discretionary income calculation?  The last thing I need is for this move to put me into a loan payment that I can't afford on a monthly basis.

    Any advice is appreciated,

     

    Mike

     

  • #2
    I did a little more reading on this and I found a reference to the Modified AGI, in which the income from the conversion can be excluded.  The question still remains, can the Modified AGI be used for IBR payment calculation?

    Comment


    • #3
      Your payment is based upon AGI and family size. AGI would include any Roth conversions. I have not seen any source saying that AGI can be adjusted to back out the Roth conversion.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment

      Working...
      X