Louis2
Recycles dryer sheets
- Joined
- Jan 20, 2014
- Messages
- 58
Wondering if others have solved this. I recently early retired at 50. For the next several years I will have less income and thus low tax bracket (10% effective). Then at 55 my pension will start and I'll jump up slightly (~13-15% effective). Then around 70 the combination of SS and mandatory withdrawals will push me up significantly (>20% effective).
Is there some strategy I should be using to take advantage of the lower rate in the near term? When I try to run the numbers, I don't come out ahead by small earlier withdrawals of IRA, so I guess the tax deferred growth continues to beat the tax bracket advantage. Am I missing something obvious?
Is there some strategy I should be using to take advantage of the lower rate in the near term? When I try to run the numbers, I don't come out ahead by small earlier withdrawals of IRA, so I guess the tax deferred growth continues to beat the tax bracket advantage. Am I missing something obvious?