Can you change the deferred income to a 10 year payout, perhaps starting later than immediately after you retire?
Back to what you asked: with a $500K/yr income and MFJ, that's just into the 35% federal (plus whatever state) rate. If some of that $500K is qualified dividends, then maybe it's only 32% federal.
You currently have nowhere near enough in traditional accounts to cause a 4%/yr withdrawal rate to reach the 32% bracket. Even with a $200K/yr "forced" income, you would need over $4 million in other traditional accounts.
Given that, you have no room to do worthwhile Roth conversions while working, only a little room while you are "forced" to take $200K/yr, but much room after that.
Is that what you see also?
Back to what you asked: with a $500K/yr income and MFJ, that's just into the 35% federal (plus whatever state) rate. If some of that $500K is qualified dividends, then maybe it's only 32% federal.
You currently have nowhere near enough in traditional accounts to cause a 4%/yr withdrawal rate to reach the 32% bracket. Even with a $200K/yr "forced" income, you would need over $4 million in other traditional accounts.
Given that, you have no room to do worthwhile Roth conversions while working, only a little room while you are "forced" to take $200K/yr, but much room after that.
Is that what you see also?
Statistics: Posted by FiveK — Wed Dec 27, 2023 12:51 am — Replies 3 — Views 215