Well I'm now at 6 months away from retirement and my schooling has created way more questions than answers. Looking like we will need to be creative in keeping our taxable income below the next tax bracket, and then figuring in SS in the future... wait to gain more... just to pay it back in taxes. Then trying to figure how much to roll out of the 401K into ROTH without the next step in tax... UGH
some opinions/ guidance?
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ivinsfan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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You'll have lots more time to figure this out in 6 months...
Tax rates are important but I think number is projecting a good income flow for your DW in later life since she is early 50's and younger then you are. After you have that nailed down worry about tax brackets.
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You'll have lots more time to figure this out in 6 months...
But Im needing to get busy making choices now.... considering taking some of our cash savings and open a ROTH IRA account before retiring. That will leave us with one year of risk paying extra if we need to hit my 401 for any reason, and start rolling the 401 out to the ROTH next year after our Taxable income drops a bit. But then we have the 5 year wait to figure... but should be fine with her still working... BUT with considering her retiring early too.....
ivinsfan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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No you don't, you have until April of 22 to fund a roth for 21....if your wife retires too it's imperative you have after tax cash for living expenses to keep your HC costs low.But Im needing to get busy making choices now.... considering taking some of our cash savings and open a ROTH IRA account before retiring. That will leave us with one year of risk paying extra if we need to hit my 401 for any reason, and start rolling the 401 out to the ROTH next year after our Taxable income drops a bit. But then we have the 5 year wait to figure... but should be fine with her still working... BUT with considering her retiring early too.....
I see you have 35K in cash so I wouldn't put that cash in a Roth. Honestly you and your DW need to sit down and figure out if she's going to work another 7 years, before you stop working. Seven years less wages and lower/no pension is a whole different ballgame money wise.
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Thinking the Roth needed in 21 so 5 years up in 26.
Only reason some the cash is its already taxed... reading cap is $7000/yr
The wife will be working 2 more years anyway... @55 would be the earliest date.
Whats nice is both of us are under the same system, shes state i'm local government, so the rules are the same for us both...
COLA has been asked about, and its not annual, but the average Hx since 85 has been 2.3%... a little under the national average... that makes me feel better.
Only reason some the cash is its already taxed... reading cap is $7000/yr
The wife will be working 2 more years anyway... @55 would be the earliest date.
Whats nice is both of us are under the same system, shes state i'm local government, so the rules are the same for us both...
COLA has been asked about, and its not annual, but the average Hx since 85 has been 2.3%... a little under the national average... that makes me feel better.
