If had to do it over, I would aggressively start converting from Tax Deferred account to a Roth, as early as possible.Hello Fellow Bogleheads,
My wife and I are a couple of years out from retirement at 50/47 and I am firming up the tax efficient retirement income plan. We have been saving and investing for years like many of you, and I wanted to test the plan for tax efficiency. Here’s what we currently have to work with (projected to 2026 at 7%):
Brokerage - $4.3MM
Tax Deferred – $5.1MM
Roth – $1.2MM
Drawdown rate - $20K/month (25% higher than actual planned drawdown rate)
529’s – set up and ready to go for the kids at 7% to cover the cost of state school
We had planned to retire and do a Roth conversion ladder and fund from the brokerage account until the 5 year mark where we could access the money. ...
It seems your RMD starts at age 75 and SS income by age 70, at the latest. Adding RMD to SS income could present substantial Taxable income in addition to any other taxable income.
AARP RMD calculator: https://www.aarp.org/retirement/require ... alculator/
Example using current 2024 IRS table and current age 73 RMDs, $5M in tax deferred, assume 4% return:
First year required RMD is $188,679.25
Ten years later RMD is $268,257
Twenty yeasr later RMD is $337331
2010: The Year of the Roth Conversion: https://www.journalofaccountancy.com/is ... 91743.html
Statistics: Posted by wwhan — Thu Aug 22, 2024 4:51 pm