The goal is to level your taxes across your lifetime - or in manageable chunks, say 10 years. I do detail planning year by year, after doing a broad long term view. My heirs would certainly pay more, but hoping that is a decade or two down the road! Staying in a 12% bracket only makes sense if you always will. If you foresee hitting 22% or 24%, then may as well bite now and let the assets grow. You do have a correct handle on how to assess the tax hit. Again, the 24% bracket is so much higher... One can make this decision a year at a time.I have been reading so much recommending to only go into your current tax bracket, which has led me to start to question it.
My current tax bracket is 12%. My RMD bracket will be much higher. Perhaps I have to consider paying additional taxes now, to try to avoid IMMRA high brackets. It seems the little I'm converting now, is a pittance.
Statistics: Posted by CAsage — Wed Feb 07, 2024 12:14 pm — Replies 17 — Views 1168