Happily Retired
Dryer sheet aficionado
- Joined
- Apr 5, 2014
- Messages
- 30
A financial planner versed (she says) in Drawdown Strategies suggested that my DW and I consider seriously converting a good portion of our taxable IRAs to roth IRAs. I understand the WHY, but think I may be okay NOT doing this. I need some help though.
Fastforwarding to RMD time at 70 1/2 Here's the math. We trying to stay in the 15% tax bracket. The spreadsheet show $417k of taxable IRA then.
$13,110 non-COLA pension for the both of us
+ $58,228 Social security for the both of us
+ $15,427 RMD year 1 ( $417k * 3.7% = $15,427)
------------
$86,765
$86,843 I'm projecting the 15% tax bracket top to be this for 2026
PROBLEM: We're WITHIN the 15% tax bracket, but barely.
QUESTION: Since only 85% of our Soc Sec is taxable, MAYBE we have much more cushion. CORRECT? Current cushion = $78.
$13,110 non-COLA pension for the both of us
+ $49,493 Soc Sec both (85% of $58,228 = $49,493)
+ $15,427 RMD year 1 ( $417k * 3.7% = $15,427)
------------
$78,030
$86,843 I'm projecting the 15% tax bracket top to be this for 2026
We now have $8,813 of cushion, using 85% of Soc Sec.
Thanks for your input.
Gary
Fastforwarding to RMD time at 70 1/2 Here's the math. We trying to stay in the 15% tax bracket. The spreadsheet show $417k of taxable IRA then.
$13,110 non-COLA pension for the both of us
+ $58,228 Social security for the both of us
+ $15,427 RMD year 1 ( $417k * 3.7% = $15,427)
------------
$86,765
$86,843 I'm projecting the 15% tax bracket top to be this for 2026
PROBLEM: We're WITHIN the 15% tax bracket, but barely.
QUESTION: Since only 85% of our Soc Sec is taxable, MAYBE we have much more cushion. CORRECT? Current cushion = $78.
$13,110 non-COLA pension for the both of us
+ $49,493 Soc Sec both (85% of $58,228 = $49,493)
+ $15,427 RMD year 1 ( $417k * 3.7% = $15,427)
------------
$78,030
$86,843 I'm projecting the 15% tax bracket top to be this for 2026
We now have $8,813 of cushion, using 85% of Soc Sec.
Thanks for your input.
Gary