"Hi Joe, Big Al, and Andi, your show is the best. I listen to it both days on the weekends. I have a $150,000 capital loss carryover in my brokerage account, left over from the dot-com bust. I can deduct $3,000 of that money each year from my ordinary income. At that rate it will take 50 years to zero-out the balance. I'm wondering what's the best way to leverage this money. I've heard that the carryover does not survive the individual. (What if the account is in a trust?) I've also heard that you can use this money against capital gains in the same account (not enough there and not enough profits in the bear market), or Roth conversions, or RMDs, or real estate sales. I'll be 69 soon, and will start taking Social Security next year at 70. I've got about $300,000 in investments, mostly in retirement accounts. I expect to be working past 70. (I'm in the 24% bracket, with a little in 32%. I've got $200,000 in equity in my home, and 300 left on the mortgage. No rental real estate. No pension.) I'm thinking about two main ways to use this loss:
1) Roth conversions, maybe $50,000 a year for three years.
2) RMDs, starting at 72.
Are there other options? Does it make more sense to use the loss now for Roth conversions or wait for the RMDs? Thanks so much. I've learned a lot from all of you. San Diego craft beers are pretty amazing. I'm enjoying Stone IPA. - Steve, San Diego"
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15 сен 2024
