MikeyInMarin
Dryer sheet wannabe
- Joined
- Mar 5, 2016
- Messages
- 24
I keep seeing references to threads about, after FIREing, the desirablity of keeping below the 15% tax threshold (~$37k for me as a single filer) by living off of Roth & post-tax/cash accounts.
I don't think that is in order to do Roth conversions cheaply, because my understanding is that you need earned income to do a conversion, right?
My current pre-FIRE income now makes a Roth conversion very expensive (Fed 28% bracket). Right now 75% of my retirement investment is 401k and Rollover IRA (the rest is slightly more Roth than cash). My early retirement COL budget is most of $100k/year, of which 60% would come from my investments. So I'd expect it would be cheaper to pay income taxes when I need to rather than now (I assume status-quo tax policy).
Am I missing something?
Thanks,
I don't think that is in order to do Roth conversions cheaply, because my understanding is that you need earned income to do a conversion, right?
My current pre-FIRE income now makes a Roth conversion very expensive (Fed 28% bracket). Right now 75% of my retirement investment is 401k and Rollover IRA (the rest is slightly more Roth than cash). My early retirement COL budget is most of $100k/year, of which 60% would come from my investments. So I'd expect it would be cheaper to pay income taxes when I need to rather than now (I assume status-quo tax policy).
Am I missing something?
Thanks,