ER...the early years questions
Here is my early thinking for how to handle the years between ER and RMDs. I'm looking to minimize taxes down the road while maximizing growth. This is probably a given but I figured I'd state the goal.
For reference here's our current standing for ER (removing kids from this picture as by ER they should be taken care of by other accounts).
Today: Me: 40, DW: 49 (retired)
My 401k: $575,000
My Roth IRA: $50,000
DW 401k: $400,000
DW tIRA: $80,000
I plan to retire at age 52. At that point DW will be 61.
At retirement I hope to start moving DW's (starting with her as she's older) tIRA to a Roth IRA and then start working on her 401k to Roth. I'll move the max amount per year possible to stay in the 15% tax bracket. We'll live off our taxable account @ 15% LTC (We are planning to increase our % of savings allocated here going forward for this reason).
Also, when DW turns 62 she will file and suspend her SS and I will claim the spousal benefit. This will hopefully continue until I turn 72 and start collecting on my SS.
Hopefully, by the time I turn 59 1/2 we'll have all her accounts converted (not expecting it to be done in 7 1/2 years but we'll continue the process) over to Roth and I can start the process with my 401k. At this point we can start using her Roth as another income stream if the taxable account is getting low.
I do plan on staying with my company until I retire at 52 so there is always the possibility of doing a 72t to access my 401k early if needed.
I'm not looking into the details as of yet because we're still 12 years away and a lot can change by then but I would like to have a general understanding of what it might look like at that point given what we know today.
So, from a high level is this a decent plan? Other thoughts/suggestions?