Today on Your Money, Your Wealth® podcast #266 with Joe Anderson, CFP® and Big Al Clopine, CPA: if you’re in the 22% tax bracket, does 22% of what you make go to the IRS? How does capital gains tax work with ordinary income tax? Joe & Big Al explain how tax brackets work and answer your Roth contribution and Roth conversion questions: like what’s the point of a Roth conversion if you’re just leaving the money to your kids? Plus some Mega Backdoor Roth talk and spousal contributions. Send in money questions, read the transcript & access free financial resources in the show notes:

00:53 – How Do the Tax Brackets Work?
06:50 – Capital Gains Tax vs. Ordinary Income Tax
16:07 – I’m Fully Funding Roth. Should I Convert the Employer Match From Traditional to Roth?
20:13 – Why Contribute to Roth in States that Don’t Tax Withdrawals?
28:08 – What’s the Purpose of Roth Conversions If I’m Just Leaving the Money to My Kids?
35:43 – The Different Paths to Roth Conversion
42:41 – Can My Spouse Contribute to her Existing Roth IRA?
45:28 – 529 Plan Overseas Withdrawal Strategy: Would I Owe Tax and Penalty?

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