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Personal Investments • Re: advice on 457b ROTH vs 457b pre-tax

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...we are going to touch 24% tax bracket. I am not sure which tax bracket we will be in retirement, not expecting 24%.
We are 13 /15 years from retirement.
I would not use the Roth, since you expect to be in a lower tax bracket when you retire. When I was working, my criterion was that I would use the Roth only if we were able to do it within the 15%/12% bracket. For most of my career no Roth was offered, but most of the money that went into my 457 and spouse's 403b would've been taxed above 15% (or 12%) so wouldn't have done Roth anyway. We were eligible to contribute to Roth IRAs and did max those out.

Now in retirement we've been doing Roth conversions within the 12% bracket. However, my former employer health coverage will end soon and, at that point, so will our Roth conversions since the ACA will effectively add about a 15% surtax.

Statistics: Posted by jeffyscott — Thu Jul 25, 2024 8:44 am



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