I have been slowly landing the plane for the last 2 years as I unwind my business and plan to start taking withdrawals in 2022. Like most here, I have a macro strategy that makes assumptions on current/future taxes, RMDs, when to take SS, but as I get closer to the annual withdrawal plan, I am trying to figure out the best steps. In my case, my nest egg of both after tax and tax deferred accounts split roughly 55/45 will fund my spend. Since I am planning for a larger spend, ACA/IRMA really isn't my concern. Right now, I plan on doing annual Roth conversions starting next year (age 57) until age 72 in the 24% tax bracket. For now, I am sitting on a couple of years worth of cash as I get ready to take withdrawals. I also plan on turning off my interest/dividend reinvestments in my after tax accounts which will cover close to half of my annual spend. So my question is really how/when do you pull from accounts/do Roth conversions/create capital gains and run a mock return to know you are staying in bounds of your desired effective tax? At first glance, my thought is you want to peg the Roth conversions toward the end of the year and back into a desire effective tax bracket, but if the market takes a dip, capitalize then.
Inquiry minds want to know!
Inquiry minds want to know!