Assuming:Age 62, current value across 403B, 457 and IRA is 5.8M. But I've been at the 32% bracket, and before that I was 39% for a while. Yes, it's nice to have a problem, and I should have caught this earlier, but I've always made conservative projections (5% growth in planning, realized was 10% leading, so also much more growth than my original plans. I originally expected to retire at 60 and do some conversions then and spend some down in the gap. But I kept working, and though I may go to <50% in Dec, with a buy-out, I will not be <32 until 2025. Going to be hard to convert enough to make a difference. So far the projections don't suggest any conversions increase either ending balance or charitable giving. I've redone them using my own forms, RPM, and rightcapital tools and am getting somewhat conflicting answers, which is why I started trying to understand what was going on.That caught my eye as well, implying a tax-deferred pot in the neighborhood of $10 million. OP, I didn't see any details about starting value or timing. Is this RMD of $400k projecting far down the road, after many years of growth and/or life expectancy (and therefore the divisor factor for RMD) is much shorter/smaller? Or is your IRA really that large? If so.... "nice problem to have," etc, etc ... but I can understand the concern!I can't even wrap my brain around an RMD of $400k after QCD. That implies an extremely large tax-deferred account. Hard (for me) to imagine if Roth conversions will help or not.
- you are staying put and not moving from a state with income tax to a no state income tax state
- the tax rate sunsets and reverts back in 2026
- have funds outside of the IRA for the Roth conversion tax
- married MJF
- have significant assets outside of the IRA with dividends and distributions
it may may sense to convert the entire tIRA before 2026. This avoids any IRMAA tier and avoids have the surviving spouse being put into the 39% bracket.
Statistics: Posted by ee_guy — Thu Apr 04, 2024 3:20 pm — Replies 13 — Views 655