Are you sure? I haven’t done the math for op or used mcq’s spreadsheet, but return on the deferred taxes gained by waiting until rmds begin lessens some of the tax impact. I think the point of the study is that yes, conversions will eventually pay off but op might have to live to 100 to see that day.Depends on the future rate avoided. For example, converting in the 24% bracket (including NIIT, IRMAA, etc., effects that increase the marginal tax rate above the bracket rate) to avoid the 32% bracket is reasonable.I don’t think there’s much to be gained converting past the 12% tax rate. Have you looked at this thread:
viewtopic.php?t=351540
Op, I’m sure I’m missing something since you’ve obviously done some meticulous planning but aren’t there penalties for distributions before the age 59 1/2? And have you looked at opensocialsecurity.com to understand the effect of delaying ss until 70.5? If you were to delay ss, it might allow a lower conversion rate resulting in lower taxes?
Statistics: Posted by gips — Thu Apr 11, 2024 4:05 am — Replies 8 — Views 1336