Beginner's withdrawal strategy question

[DanP]

OP here - so just to make sure on conventional wisdom:

Use up taxable first, then deferred*, last Roth

(* Unless there are some exotic tax scenarios)

As I enter 2018 without a W2 for the first time as an adult, but (possibly) still some consulting income, couple of questions:

* If I continue my part time consulting then I may qualify for direct Roth contributions, but only maybe because income may be too high. BUT, no-brainer that if I qualify for Roth contributions I should right?

* Regardless of potential earned income, we (wife and I) should still fund our T-IRAs even if that is from withdrawals from taxable accounts right?

[Perryinva]

Yes on the Roth, but unsure why you would fund tIRA with after tax in retirement when you are at your lowest or final tax rate? Whats the point?

[DanP]

Quote:

Originally Posted by Perryinva Yes on the Roth, but unsure why you would fund tIRA with after tax in retirement when you are at your lowest or final tax rate? Whats the point?

Well, my part time consulting is still bringing in 6 figures, that plus my taxable accounts keep me out of the lower tax rates.

But not sure that I will continue consulting for much longer.

Still, even without the extra income, as a general rule wouldn't one want to defer taxes for as long as possible and keep the money invested? Any T-IRA contributions would not be touched for 10+ years.