Hello,
1st year of ER going well. I do have a tax question. We currently have 4 years of expected expenses in cash in short term CD, kind of waiting for the rates to keep going up. It is now about time for our 1st move of about 40K from 403b bond fund to a CD to make a 5 year cushion.
This is spouse's 403B as she if fully retired and over 59 1/2. I am still employed 1/2 time with 403b but not yet 59 1/2.
She has 48K of her 125K in Roth. My 403b plus hers plus cash gives us 4% SWR of 40K.
Any formula as to how to move the money to make the 40K part of the 5 year cushion? I know that regular 403b is taxed and Roth principle is tax free. Do I move the money all at once and just pay the tax on the withdrawel or try to spread it out over the year...
Maybe a dumb question, sorry! But I really seem to get the big picture of the great 3 bucket theory, just not sure how to do the first big switch from the 403b. FYI, this this is CREF money and they offer no CD's just low interest money market for cash, not where I want the $$.
Thanks...Ted
1st year of ER going well. I do have a tax question. We currently have 4 years of expected expenses in cash in short term CD, kind of waiting for the rates to keep going up. It is now about time for our 1st move of about 40K from 403b bond fund to a CD to make a 5 year cushion.
This is spouse's 403B as she if fully retired and over 59 1/2. I am still employed 1/2 time with 403b but not yet 59 1/2.
She has 48K of her 125K in Roth. My 403b plus hers plus cash gives us 4% SWR of 40K.
Any formula as to how to move the money to make the 40K part of the 5 year cushion? I know that regular 403b is taxed and Roth principle is tax free. Do I move the money all at once and just pay the tax on the withdrawel or try to spread it out over the year...
Maybe a dumb question, sorry! But I really seem to get the big picture of the great 3 bucket theory, just not sure how to do the first big switch from the 403b. FYI, this this is CREF money and they offer no CD's just low interest money market for cash, not where I want the $$.
Thanks...Ted