This is sort of my plan as well. I plan to take 401k withdrawals (which by that time will be rolled to an IRA) only up to the 15% tax bracket top (currently $69k for joint filers), then top off any additional needed amounts with taxable funds, Roths, etc.
I'm sick and tired of paying nearly 40% of my income in taxes (combined federal, state, local, FICA, medicare, etc.)
Originally Posted by Lsbcal
Probably people know this already. Assuming you've done Roth conversions and have a bundle in it now, it's good to produce a table for yourself with your tax deductions thrown in using TurboTax. Columns of interest could be:
1) IRA withdrawals (income stream #1) in $10k increments maybe
2) SS that is taxable (from TurboTax 1040 result)
3) Roth withdrawals (tax free, income stream #3)
4) Fed tax
5) state tax
6) Fed marginal rate (from #4)
7) state marginal rate (from #5)
8) combined marginal rate (from #4 and #5)
We will be taking IRA withdrawals + SS + Roth, where Roth is set so as to keep the combined marginal rate low.