goingtotravel
Recycles dryer sheets
- Joined
- Jun 1, 2018
- Messages
- 176
We didn't do any tax planning for retirement. None. We just saved in our TSP accounts and ignored any planning. Then we woke up financially after a close family member died and realized we weren't going to live forever and that retirement was a possibility. Luckily we managed to save a good amount of money and will have two pensions and two SS payments (at 62 and 67, retiring at 56).
We are currently in the 24% tax bracket and will be in the same tax bracket in retirement unless we cut our expenses a bit and then we can barely stay in the 22% bracket. But we don't want to cut expenses if we don't have to and Firecalc is giving us 100% with higher spending. We aren't worried about ACA because of having FEHB. We have enough cash to avoid any TSP withdrawals for a year after retirement and some real estate that one of us inherited that will cover another year of withdrawals once we sell it, hopefully next year. We do not have a any other accounts to pull from to pay taxes on any Roth conversions.
The things I've been told to consider is 1) Will tax rates be higher in the future? and 2) If one spouse dies, then the other spouse would most likely be in a higher tax bracket when filing single. What else do we need to consider about Roth conversions? Do they make sense given our financial situation?
We are currently in the 24% tax bracket and will be in the same tax bracket in retirement unless we cut our expenses a bit and then we can barely stay in the 22% bracket. But we don't want to cut expenses if we don't have to and Firecalc is giving us 100% with higher spending. We aren't worried about ACA because of having FEHB. We have enough cash to avoid any TSP withdrawals for a year after retirement and some real estate that one of us inherited that will cover another year of withdrawals once we sell it, hopefully next year. We do not have a any other accounts to pull from to pay taxes on any Roth conversions.
The things I've been told to consider is 1) Will tax rates be higher in the future? and 2) If one spouse dies, then the other spouse would most likely be in a higher tax bracket when filing single. What else do we need to consider about Roth conversions? Do they make sense given our financial situation?