Reply to Roth 401k in 35% Tax Bracket

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[quote=Anonymous]The people who so quickly dismiss this question and suggest doing Roth conversions once you stop working have pretty limited views of HNW, high earners' challenges. I am looking at a MASSSIVE tax burden once RMDs kick in and there's little room to do anything about it. Even if we retire as planned at 62 we're looking at a minimum of $100-150k in taxable income in the investment accounts. That leaves at most 10 years of pulling maybe $250k/yr out of pretax retirement accounts. Even with those withdrawals my RMD at 72 is likely going to be $500-700k to start. And it will increase from there going over $1m/yr for many years. All of those RMDs are going to be in max tax bracket. Based on that I, like OP, am considering diverting to Roth 401ks now to avoid what I predict will be even higher max tax rates by the time my RMDs kick in.

My point is this: not everyone's situations are the same. It is hubris to suggest the analysis is as simple as "you're only going to get $.65 on the dollar compounded.[/quote]

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