tax planning - soc sec - RMD - I Bonds
I finally realized that there are a lot of tax implications to being retired. I have not hit them yet, but am now trying to model things going forward. I would like opinions on a few things.
I am filing as single.
I will be doing ROTH conversions up to the top of the 22% starting next year once I am off of ACA and until I turn 72. I will be delaying taking social security until I turn 70.
According to the social security statement I will be getting about $46,000 a year from social security and after the ROTH conversions my RMD will be around $12,000 to $11,500.
So it seems that half of social security plus RMD comes to $35,000 with the trigger for 85% of social security taxed being $34,000. That would mean I am over the limit even without taking any interest or dividends into account.
Should I just give up on trying to avoid having 85% of social security taxed?
I have some series I savings bonds with a relatively decent yield. The first of these will be 30 years old and stop paying interest when I am 74 in 2030. The gain on it will be enough to push me into the next higher marginal tax rate if I cash all of the bonds in the year that they mature.
I suppose the answer will really depend on what interest rates are available or what I might invest the I bond proceeds in, but I am wondering if I should hold some of the bonds past the maturity date to spread out the tax hit, even though they are not accruing interest, or if I should cash some before they mature to spread the hit, even if it means giving up a decent interest rate.
I am still working on my model, but I figured I would ask for some general opinions on this.