With the recent tax planning threads, I’ll throw my situation out for your collective wisdom and perspectives.
TSP: $1,100K (at today’s balance/current age, SEPP provide ~$29K minus taxes)
tIRA non-ded: $5K basis $3.5K
Roth IRA $312K
Taxable MF $260K basis $75K
Taxable Stock $38K basis $12K
Annual cashflow need for next year (will liquidate in late 2022 to fund 2023) ~$35K in 2023 and about $45K in 2024 growing with inflation thereafter (or inflation plus BTD if the market is kind to me)
Earned income est $2,000
Qualified Dividend est $4,500
Interest is negligible
Desire to keep MAGI under $35K, ideally under $30K for ACA. I will also max out HSA contribution in 2022.
Long term plan is to start a SEPP using life expectancy method in a few years when I am sure I’m not going to have significant earned income (FIRE Fail?), if the balance grows substantially in order to reduce the balance that will subjected to RMDs at a higher rate, or when my taxable accounts drop to some undecided level… likely 2-3x annual cash needs.
Short term (this year) plan is to sell from VTSAX to get close to $30K threshold.
I don’t think Roth conversions are in the cards for me as the MAGI threshold is pretty low for a single person and would not allow me to liquidate to fund current living expenses without boosting those expenses pretty substantially by loss of ACA subsidy plus income tax liability. I do have a HELOC available and may use it to shift income realization/avoid selling in a severely depressed market. Anything I might want to consider? Thanks!
TSP: $1,100K (at today’s balance/current age, SEPP provide ~$29K minus taxes)
tIRA non-ded: $5K basis $3.5K
Roth IRA $312K
Taxable MF $260K basis $75K
Taxable Stock $38K basis $12K
Annual cashflow need for next year (will liquidate in late 2022 to fund 2023) ~$35K in 2023 and about $45K in 2024 growing with inflation thereafter (or inflation plus BTD if the market is kind to me)
Earned income est $2,000
Qualified Dividend est $4,500
Interest is negligible
Desire to keep MAGI under $35K, ideally under $30K for ACA. I will also max out HSA contribution in 2022.
Long term plan is to start a SEPP using life expectancy method in a few years when I am sure I’m not going to have significant earned income (FIRE Fail?), if the balance grows substantially in order to reduce the balance that will subjected to RMDs at a higher rate, or when my taxable accounts drop to some undecided level… likely 2-3x annual cash needs.
Short term (this year) plan is to sell from VTSAX to get close to $30K threshold.
I don’t think Roth conversions are in the cards for me as the MAGI threshold is pretty low for a single person and would not allow me to liquidate to fund current living expenses without boosting those expenses pretty substantially by loss of ACA subsidy plus income tax liability. I do have a HELOC available and may use it to shift income realization/avoid selling in a severely depressed market. Anything I might want to consider? Thanks!