tmm99
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 15, 2008
- Messages
- 5,221
My employer will be offering Roth 401K, and I would like some input.
Background:
I am 54. Hopefully, I will get to FIRE around 60.
Close to 70% of my portfolios are in my tax deferred accounts. I have been doing the after tax IRA conversion to Roth IRA the last few years in addition, but that is a very small amount in tax free account compared to the tax deferred.
I was looking at Fido RIP numbers and my Minimum Required Distribution is in the 50K range (per year) on average. With the taxes I would have to pay for the SS payment, it looks to me like I would be paying a lot on taxes.
I could be wrong, but maybe tax rate will go up in the future... (We can never know about the days to come, but we think about them anyway...) Maybe not. I don't know, but I feel (although I don't know why) that it would be nice if I had some after tax money that is in my portfolio I could use in conjunction with my before tax money so I won't get hit hard with taxes each year....
Would it be stupid to do Roth 401K this late in the game - a few years from retirement? (I am in 28% tax bracket right now, but I am socking away (=investing) a lot of after tax money - after 401K, after tax IRA, etc, I think I am putting in about 20K into the market) - maybe I may not want to do 100% Roth 401K but a part of it?
What would you do in my situation?
Background:
I am 54. Hopefully, I will get to FIRE around 60.
Close to 70% of my portfolios are in my tax deferred accounts. I have been doing the after tax IRA conversion to Roth IRA the last few years in addition, but that is a very small amount in tax free account compared to the tax deferred.
I was looking at Fido RIP numbers and my Minimum Required Distribution is in the 50K range (per year) on average. With the taxes I would have to pay for the SS payment, it looks to me like I would be paying a lot on taxes.
I could be wrong, but maybe tax rate will go up in the future... (We can never know about the days to come, but we think about them anyway...) Maybe not. I don't know, but I feel (although I don't know why) that it would be nice if I had some after tax money that is in my portfolio I could use in conjunction with my before tax money so I won't get hit hard with taxes each year....
Would it be stupid to do Roth 401K this late in the game - a few years from retirement? (I am in 28% tax bracket right now, but I am socking away (=investing) a lot of after tax money - after 401K, after tax IRA, etc, I think I am putting in about 20K into the market) - maybe I may not want to do 100% Roth 401K but a part of it?
What would you do in my situation?
Last edited: