W2R
Moderator Emeritus
I converted some to ROTH and have about 1/3 each ROTH,401K and Taxable now. I am maxing my 401K until retirement but am 60 now. When I retire I like having different pools of money with different tax implications. I will draw enough from my 401K to get me enough taxable income to get to the bottom of the 15% bracket. The ROTH will be for if I ever need a huge amount at once since it cost me nothing more for taxes. I will use it up before I die. The taxable account I can play with and hopefully have long term gains. I will keep much of this for last if I don't use it all I will leave it to heirs with a stepped up basis.
I find your approach to be very appealing and intelligent. It gives you a lot of control over how much taxable vs non-taxable income you choose to take every year.
Will you take Social Security when you first retire? If not, what is your strategy concerning 401K withdrawals and SS? I gather that SS is taxable for most of us, and I have thought it might be smart to withdraw more from my 401K in the years before I start receiving SS than I would later, so that I could stay in about the same tax bracket.
I am 60 years old like you, and I admit that some days I do feel like an "old woman"!! But on other days I feel the same as I did when I was 25.
Last edited: