Reply to Roth 401k in 35% Tax Bracket

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We are a two fed family and we switched our TSP/401K to Roth a few years ago based on the idea that taes will likely go up at some point (a gamble of course) and our retirement income will be pretty high.  The Roth does not have RMD so it will be the last $ we tap and hopefully pass to our heirs. Since we did non Roth for many years it is like hedging our bets.[/quote]

Any reason you decided not to wait until you retire and before RMD kicks in? You know 10-15 year window when you are going to have lower income than now? [/quote]

They are probably in the same boat as a lot of feds. From the moment they retire, they will likely be in the 24% tax bracket, so there will be no opportunity to do conversions at a better rate, like 12%. [/quote]

This...I will be a 40 year fed at retirement (unless DOGE says otherwise).  My  tax rate will not drop too much.[/quote]

Another fed here. My concern isn't going 24 to 12. My concern would be hitting 32 once TSP and spouse's 401k gets too big. [/quote]

+1 I'll be doing some Roth conversions in the 24% bracket during retirement to avoid potentially getting bumped into a higher tax bracket and also avoid increase in Medicare.[/quote]

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