Roth Conversions for Childless Couple

[Sunset]

We talk about this a fair amount, but seldom mention that the surviving spouse could remarry at some point.

But if he/she remarries someone in a similar financial situation, then income taxes would be roughly the same: double the number of people, double the AGI.

If saving on taxes is the priority, then remarrying a nearly destitute individual would be the optimal solution.

I don't think this would be my priority, but then, I'm not planning on marrying again...

Brilliant.... it could also end homelessness.... and end/reduce the welfare roles.... improving society 1 marriage at a time

 

[Markola]

How does one

Some kind of flexible strategy like this. Couldn’t one fill a lower bracket with IRA withdrawals and spending above that with Roth withdrawals?

https://www.fidelity.com/viewpoints/retirement/tax-savvy-withdrawals

 

[pb4uski]

^^^^^^ I haven’t modeled it for us but I tend to think of our Roths as lumpy income too, which we’ll use each year during RMDs to buy down our taxable income into the lower bracket.

How does one

...buy down our taxable income into the lower bracket.

Some kind of flexible strategy like this. Couldn’t one fill a lower bracket with IRA withdrawals and spending above that with Roth withdrawals?

https://www.fidelity.com/viewpoints/retirement/tax-savvy-withdrawals

Yes, as long as one is over 59-12, but its not in any way, shape or form "buying down" anything... it is simply using different tax status accounts in a smart way to minimize taxes.

 

[tmitchell]

This is such a helpful discussion for me. Thanks everyone.