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Old 07-04-2018, 05:54 AM   #41
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...In 2039, tax rates may be much higher, or lower. Or there may be a VAT. Or we may be a different country. Or an asteroid may hit.
For sure we'll have 10 sets of congressmen/women messing around between now and then.
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Old 07-04-2018, 05:55 AM   #42
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If you're paying near zero income taxes after age 70 then you're Roth converting too much! Hang on to some of your tIRA and make use of some of those low post-70 tax rates.
What "low post-70 tax rates"? Tax rates are based on income and don't change with age... my tax rate will be higher when I am 70 than it is now at 62.
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Old 07-04-2018, 06:54 AM   #43
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What "low post-70 tax rates"? Tax rates are based on income and don't change with age... my tax rate will be higher when I am 70 than it is now at 62.
Perhaps the poster meant taking advantage of at least the standard deduction after 70 vs. all Roth conversions before 70?
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Old 07-04-2018, 07:09 AM   #44
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Only thing that I could think of is the higher standard deduction, but that is a 65... not 70.
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Old 07-04-2018, 07:47 AM   #45
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What "low post-70 tax rates"? Tax rates are based on income and don't change with age... my tax rate will be higher when I am 70 than it is now at 62.
Hard to know what Animorph is talking about, reviving a 3 month old thread with no quoting of who this applies to. I don't think the OP was paying nearly 0 taxes post-70, nor did I notice anyone else in the thread say that. Very odd to just throw out a meaningless tidbit like that in an old thread.
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Old 07-04-2018, 10:24 AM   #46
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That is really LONG range planning !

The tax laws will have changed several times by then. I recently read that another tax cut is now in the works.

.
One thing is tax cuts now are temporary, so you have a multi year window to do Roth conversions before rates revert to the old ones.

Unfortunately, just as we are no longer subject to AMT which dropped our marginal rate significantly, IRMAA rears its head, and I have to look carefully at the trade offs.
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Old 07-04-2018, 11:32 AM   #47
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I used i-orp to do my analysis as I didn't trust my own numbers.

The RMD projections were a little staggering so I kicked up my ROTH conversions, especially since I am willing to bet 12% is going to be a great tax rate moving forward for me. I also was swayed to take the HSA exchange option even though I've had a few ER visits as that is a win/win, take taxable income which I pay zero in taxes since its LTCG to fund it, then use ROTH conversion income to take the tax break against, so $6900 becomes non-taxable with zero tax cost to me this year.

I'm at 37% tax free for my total portfolio including my cost basis in taxable, but given what I'm converting each year weighed against ACA credits, etc.. in an avg stock market I will just be converting gains and never touch the principle because that snowball gets very large quickly.
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