Timothy Sumer

Explanation of MAGI, or Modified Adjusted Gross Income. There are various definitions of MAGI used throughout the U.S. tax code. This video discusses the six you're most likely to come across in retirement planning : 👉 MAGI for deductibility of traditional IRA contributions 👉 MAGI for eligibility of making Roth IRA contributions 👉 MAGI for Medicare premium surcharges known as IRMAA 👉 MAGI for ACA premium tax credit eligibility 👉 MAGI for the Net Investment Income Tax, or NIIT 👉 Provisional Income (not really a MAGI...) for determining how much of your Social Security benefits may be federally taxable Links in this video: retirement planning Insights - Taxes in Retirement - ​ #MAGI #ModifiedAdjustedGrossIncome #TaxPlanning DISCLAIMER: This video is only helpful hints and education. It is not specific tax, legal or investment advice. Before considering acting on anything you see in this video, first consult with your tax, legal or investment advisor. While the

On Your Money, Your Wealth® podcast #295 with Joe Anderson, CFP® and Big Al Clopine, CPA: whether you call it the barn door, the garage door, or the Roth two-step, you asked for more about the tax saving Backdoor Roth IRA conversion strategy, and Big Al and, reluctantly, Joe, are here to serve. For now at least! Should you wait until retirement to do a backdoor Roth IRA conversion? Plus, the pro-rata rule, self-employed modified adjusted gross income (MAGI) vs. AGI, and how capital gains work with Roth conversions. Also, strategizing for if and when the estate planning step up in basis tax laws change, whether a high yield savings account is good for investing $25K in cash, and listener comments on the show and the FIRE movement. 00:50 - Should We Wait Until Retirement to Do a Backdoor Roth Conversion? 08:31 - Capital Gains “Sit On Top” of Income? What About When Doing Roth Conversions? 15:44 - The Pro-Rata Rule: Are There Times When a Backdoor Roth Conversion Isn’t Worth It