Controlling Your Annual Income
At retirement, most of my funds will be in tax deferred accounts like 401K, ESOP, etc. So in essence I can basically control how much my annual income amounts to based on when I withdraw the money. I could take 2 years worth in one year and none in the next, for example.
I did a quick search, and did not see any threads on this, but I am guessing many on this board have good experience in this area.
Certainly, with the new laws I could see someone manipulating their income to get healthcare subsidies for a given year. My question is what other types of things can one consider to make the most out of the situation?
For example, how much could a person get in tax credits if they had no income for the year? Also, I imagine you want to draw out the most income you can offset given the write-offs you have in a given year. Also in the back of my mind, I am thinking it would be great to get to a situation where you have a lot of your funds in a Roth IRA, and not paying taxes on the interest or withdrawals. But I am not sure the best way to get there tax-wise. I know it always comes down to the Math, but I am trying to get a feel if I might be missing anything for consideration.