Wife and I (34 and 32) make about 180k total gross, and to this point have been maxing out my 401k but only contributing up to the match for hers. We would like to retire well in advance of 59.5 and will need funds from somewhere in order to bridge that gap, either from 72t out of our pretax accounts or our taxable accounts. With our income we are in the 28% bracket, so would it be better to up our pretax contributions and live with the fact that we will have to lock ourselves into a 72t later on, or eat the tax now and have the flexibility down the road? Anyone else had this dilemma in their FIRE planning?
I think the answer is probably to avoid the 28% and prepare to get really knowledgeable about SEPPs in about 20 years. We should have a healthy taxable account at retirement too but probably not enough to bridge fully until 59.5.
I think the answer is probably to avoid the 28% and prepare to get really knowledgeable about SEPPs in about 20 years. We should have a healthy taxable account at retirement too but probably not enough to bridge fully until 59.5.