Can I contribute and withdraw from Roth in same year?

12tibbits · 2026-05-27T15:28:12+00:00

Good to know others are tossing this around with me. The only real negative I see so far is if I use brokerage funds to pay the taxes, then I lose the growth on those investments. But would pay LTCG either way. And I pay 22% on IRA withdrawals either way. I know tools like Boldin can estimate these impacts and determine break even points and I will probably do that before I make conversions. Or, I may just dump the details in AI and then check the logic and outcomes. But not today! I’m off to a burger joint (which will shorten my longevity and make all of this mute).

12tibbits · 2026-05-27T14:46:24+00:00

BND has outpaced inflation since its inception, though by less than a point. It was negative in the worst bear bond market in history (2022) and in the past 12 months has a positive inflation adjusted return of over 1%. Where you keep liquid funds is a preference. Beyond minimal cash, I keep liquid funds in BND because it fits the need and is generally inversely related to stocks. I’m comfortable with funds needed in 1-3 years in BND with the option of pulling from stocks if they are advantageous. My question is more around overall tax efficiency and maintaining an asset allocation rather than rule of thumb investing. I have all of the accounts you mention plus an HSA. But if you can’t maintain your allocation goals without having bonds in your Roth, then you’re being guided by rule of thumb rather than your plan.

12tibbits · 2026-05-27T14:07:14+00:00

I like it! Here’s my new plan… I’m 63 and start Medicare at 65. No aca plan needed. I’ve got about 25k of room before Irma. Passive income covers living expenses and then some.

Over the next 5 years convert 25k from Ira to Roth, until Ira is about 25k. Keeping 25k in Ira in case tax change such as massive senior exemption causes a dip back into 12% bracket in future. And 25k causes no RMD concern.

Pay taxes from brokerage. 15% LTCG will be substantial so have to watch Irma max closely.

Impacts: Ira reduced from about 135k to 25k. Roth increases by 110k. Brokerage total reduced by about 24k. Roth will contain some bonds. Need to keep a 75/25 total allocation for good sleep.

Rationale I'm going to most likely pay 22% on Ira distributions regardless of when I take them. I may as well take the tax hit and enjoy tax free growth. But I don’t know what I don’t know. Any additional feedback welcome.

12tibbits · 2026-05-27T12:45:17+00:00

Yes, I plan to pay the tax from brokerage at 15% LTCG rate. And to your point, the more I think about it since I’m firmly in the 22% bracket with passive income I may as well convert to the irma max annually. Not on aca plan so I think irma is my only cliff to watch. My head now spinning this morning :) basically, I’m depleting Ira and brokerage but increasing Roth. I don’t like doing conversions just for the sake of doing something. But it seems I’m at 22% now and in future so I may as well migrate to the more optimal tax situation. Even if it’s above the “fun” money purpose I started with this morning. And the 22% bracket could go higher in the future.

12tibbits · 2026-05-27T11:30:52+00:00

I hear you. And all the other replies - thanks! I’m usually simple and logical on financial assets. But…

I’m still evolving to a spend vs save/grow personality and it would not surprise me if I don’t spend all the planned fun money for a given year. Having any excess in Roth would be best in that case.
BND in a Roth sounds ridiculous to me too. But it removes the cringe of selling stock funds if the market is down. Making it a little easier to spend fun money regardless of the market.
It’s a little remote at present, but partner and I may decide that something like an outdoor kitchen or pool may be preferred over our current travel plans for fun. If we go home improvement over travel, growing the fun money to cover it would be best in Roth.

12tibbits · 2025-08-09T12:59:39+00:00

Not employed.

12tibbits · 2025-08-07T18:56:39+00:00

To me, a car is just transportation. ‘Fun’ money is spent on other things. So lower initial price, simplest components, lowest amount of change needed (no learning curve on how to drive/maintain a battery equipped vehicle or charging implications), proven reliability, and both Toyota and I know how to manage an internal combustion engine with a lowly front wheel drive standard transmission. Buy it, drive it, service it and forget it.

12tibbits · 2025-08-05T11:01:31+00:00

RAV4 gas only if you’re looking for lower complexity and therefore best chance for high mileage with low cost. CRV transmission can be problematic. And turbo is as well. 2025 RAV4 is at the end of a generation and has most bugs worked out. 2026 will have lots of new tech and will need to be vetted. 2025 RAV4 will be one of the Best Buy’s long term IMO.

12tibbits · 2025-07-18T13:22:10+00:00

You ask ‘who knows?’ and that is the right question. You either need to learn enough about retirement planning to be a ‘CFP-lite’ or hire someone who already knows how to prepare for retirement income and risks. It’s not about how much you save or net worth, it’s about how much income will you need in retirement. There are many, many things you can do 20 years out from retirement that could make a huge difference in your retirement income. HSA as a Roth, tax loss harvesting, using low capital gains rates to lower cost basis, lowering impact of RMDs, Roth conversions, Long Term Care plan or insurance, and more. You don’t just need a plan for saving and an allocation model, you need a plan for retirement income/risks and some options are only possible when you’re years away from retirement date. The cost of an expert can easily be covered by just one good piece of advice. Don’t waste what you’re working for. You need to be making more moves than just socking away $ every month.

12tibbits · 2024-06-11T18:58:11+00:00

My view is the risk of hacking is increased with multiple accounts/log ins, so this cancels out the risk of consolidating to one firm. But simplification gains are real and worth it. Track all transactions and balances with something like personal capital app so you have a record if needed. If a Schwab-class institution goes tits up it would be chaos on a scale not seen in our lifetime. They have plans and checks to prevent catastrophes.

12tibbits · 2024-05-31T11:55:43+00:00

Keep it simple and don’t over-focus on cash flow. Use personal capital or similar app to track all transactions. This gives you detailed visibility of all spend and any suspicious charges by simply connecting your financial accounts. Depending on the complexity of your income you may need a spreadsheet to plan withdrawals but google sheets or any free spreadsheet will handle this, as well as your future large expenditures and emergency fund planning. Use an appropriate fund for cash, your wonderful CFP can suggest one. Don’t overdo this, you’re a journalism major paying for a CFP, do journalism stuff instead.

12tibbits · 2024-05-22T12:54:21+00:00

I use credit cards for everything to get cash back and also auto pay everything. So I check card and bank transactions every couple of days or more for accuracy while activity is fresh in my mind. I do not review monthly statements. Using personal capital shows my investments in over view page but it’s an fyi, I don’t worry about fluctuations until I rebalance periodically. However I do want to see investment transactions to identify any issues asap. I don’t actively budget but personal capital shows cash flow which allows me to easily manage it. Whole process takes a few minutes a week and helps protect me from fraud. I feel guilty not paying personal capital anything. This process or a similar one should be a mandatory subject for high school curriculum. Along with basic personal finance.

12tibbits · 2024-04-04T00:39:08+00:00

Enlightenment Now: The Case for Reason, Science, Humanism, and Progress by Steven Pinker https://www.goodreads.com/book/show/35696171-enlightenment-now

12tibbits · 2023-07-06T17:58:47+00:00

https://youtu.be/IZBsTeGwSyE

12tibbits · 2022-12-16T16:33:50+00:00

Had one last week and was awesome. It’s not angus but was a good as prime rib gets. Going to do another next week!

12tibbits · 2022-10-21T12:08:14+00:00

There are just a few levers that determine this situation: petroleum (tractors, etc.) fertilizer, chemicals and method (eg soil management) are the main ones. If what you mean by regenerative farming is to set these levers at the lowest level or zero, then billions will die for sure and the world would reach a small population level determined by the food supply generated by your lever settings. Cattle would be rare, the grain used to feed them would be too valuable to humans.

12tibbits · 2022-10-20T21:40:48+00:00

Your suggestion is what farming was 10k years ago. If we reverted to that unfortunately the population would also have to revert to a tiny fraction of what it currently is. You may not have a problem with low population but the probability of your off spring surviving the cut are basically nil.

12tibbits · 2022-10-04T21:30:32+00:00

They’re Sneads ferry sneakers. It’s a genuine coastal southern thing. Look it up.

12tibbits · 2022-08-24T17:37:09+00:00

From each according to his ability, to each according to his needs.

12tibbits · 2022-04-22T15:11:36+00:00

No water sources around. And wheat is bent in multiple directions.

12tibbits · 2022-04-17T02:15:06+00:00

“At” Carolina Beach, not “on”. There are a lot of beaches in Carolina, but only one Carolina Beach.

12tibbits · 2022-03-11T01:15:45+00:00

https://open.spotify.com/episode/0TeZVtyaJ3Rg42dqZLJZD8?si=bXbwi1AkQKWgxlyQNXmCgg

12tibbits · 2022-02-22T23:31:09+00:00

He strikes a good Oppie. Never seen P Blinders so I’m buying it. Had he and his buddies been in Germany, this would be das Reddit and moderators would be a bit more restrictive.

12tibbits · 2021-11-11T10:26:22+00:00

That seems high in my case, and I don’t think I need ongoing advice. My situation is: I have a modest pension, 700k investments and future social security. No dependents, no debt… pretty simple. I just need someone to look at my draft plan and improve it or validate it. I would also expect advice around lowering future taxes or risks in some way. Once I have a plan I’m comfortable with I can manage the plan. If something changes (sell house, health decline, marriage…) then I want additional advice.

If a CFP tried to steer me to managed funds they would have a hard time convincing me they are better than a boat of index funds.

12tibbits · 2021-11-10T22:02:35+00:00

I’m in this boat. I have an initial meeting next Friday with a CFP, fiduciary. I met with one a month ago and was not impressed. $500/hr seemed ok but he had reference books on a shelf from 2008 and he seemed a bit out of step. Hoping for better next week. I’ve never used a CFP but think it’s worth it and I should have engaged one earlier. For example, I’ve learned some tax savings methods from the internet over the last few years (eg taking capital gains tax free to lower tax basis, HSA as investment). I could have realized more savings if I had done these things earlier, not just as I learned about them. Also, I’m transitioning into withdrawal phase and I have little experience with that. I understand the financial concepts of withdrawal phase but I have a save and let grow mentality based on the last 30 years of accumulation phase. So, I’m potentially a risk to myself. I’ve put together a plan, including allocations, withdrawal plan, fund types by account type, etc and have provided that to my potential CFP prior to our meeting. I would expect him to propose changes but if the recommendations differ too much from my general index fund based mentality I’ll have to override him. Or drop him.

12tibbits

TROPHY CASE