Anonymous wrote:

Anonymous wrote:36% effective tax rate. I expect it to go up, which is why we have transferred about $550k to a Roth IRA.

Why would you stay in the same or equivalent tax bracket after you stop work?

I actually expect the tax bracket rates to increase to compensate for too many years below where it should have been. I made around $1.5M last year, with around $175k being passive but not capital gains. I own a number of rentals and as mortgages pay off that alone would exceed the highest bracket today. I presume to make similar amounts from a number of other income sources too.

Anonymous wrote:

Anonymous wrote:36% effective tax rate. I expect it to go up, which is why we have transferred about $550k to a Roth IRA.

Details plz. Isnt there a certain income level max?
also, I guess that means you paid taxes NOW on that money correct?

What seemed like a fortune in taxes actually, but do you know how incredible it would be to never again pay tax on that money. I'm 35. It could potentially be worth many millions.

Anonymous wrote:I think we can all expect our taxes to go up.

But we make $400K now. In retirement, we'll make $120K. Even if the brackets go up, my household's taxes will go way down.

Anonymous wrote:36% effective tax rate. I expect it to go up, which is why we have transferred about $550k to a Roth IRA.

Why would you stay in the same or equivalent tax bracket after you stop work?

39.6% and expect to be in the 15% (or equivalent) bracket at retirement.

roth back door conversion are easy, but are not tax free IF you have other IRA's. See this same topic from a few weeks ago (someone claiming how easy and painless it was - it isn't always!)...

Anonymous wrote:

Anonymous wrote:We're in the 25% federal bracket now. Expect it to be lower in retirement in a dozen years or so. ("retirement" being the age when I expect I will no longer be able to work)

Do you have retirement money saved? If you do, even if you DON'T retire you are required to take you "minimum distribution" from IRA accounts. Unless its all in a Roth IRA - you are going to be taxed on those dollars. also your social security will be taxed...not all of it but some of it will be taxed. This income will also count towards determining your tax bracket

I have the equivalent of three years of salary saved in a regular IRA and I just turned 50. Family situation has zeroed out retirement savings for the last five years and I don't see that changing. Taxes are one of those "rich peoples' problems" in my little world.