Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

But you could avoid state taxes if you move to a no-tax state. That's at least 5%.

Move to Florida etc. and start doing withdrawls when retired before SS or RMDs.

Next year you will be FORCED into Roth 401k for at least your 50 and over Catch up

Anonymous wrote:I did this but only because I intend to work to at least 70 and income would go up once RMDs kicked in.

Not OP but in a very similar financial situation. How did you calculate this? We have about 5M in various accounts and I'm over 50 so doing catch-ups. One financial advisor said do Roth for my catch up b/c taxes might go up after this administration given our national debt. Your point is also interesting. Our HHI from W2 is 500K to 700K bonus dependent. I want to stop working in 7 years.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

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.

+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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

But you could avoid state taxes if you move to a no-tax state. That's at least 5%.

You mean no income tax. They get their money somehow.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

But you could avoid state taxes if you move to a no-tax state. That's at least 5%.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

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

Anonymous wrote:

Anonymous wrote: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.

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?

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%.

I have been in the top tax bracket since I started my first company 23 years ago. I converted all funds into a roth the moment it was eligible and then switched to roth 401K once it became available. I have paid a ton in taxes for funds currrently in our roth. But we have a bit over $3.6M in our roths today in our late 40s. We have assets of another $35-$40M outside.

I continue to believe they putting funds into the roth was the right move for us and is probably right for you. Based on my assumption that you have a multi million dollar income and tens of millions in net worth.

We will have way more than we could ever spend and the idea that the money grows tax free forever is crazy. It also effectively pulls the funds out of our estate. And lastly, I absolutely believe that taxes will be higher in the future. Heck, I believed that when taxes were 39.6% and DC another 9.5% at the time.

There will be a day of reckoning to come for tax rates. And those with net worth of $50M+ and annual multiple million dollar passive incomes will be the ones to pay it. Rightfully so. But if I can accumulate $10-$20M exempt from taxes due to payments when I contributed, I’m going to do so.

Anonymous wrote: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.

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?

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.

You have enough to retire mow.

Is some of your money outside of retirement accounts?