In case you don't realize my two suggestions are meant to go together, convert at least a year of living expenses this year. That will decrease your tax-deferred account while giving you your living expenses for 2029. Repeat every year until you are 55 (since you will be over 59.5 5 years later).I care about cost basis because for the next 20 to 24 years (until we start collecting Social Security if it exists), our brokerage account is covering our expenses. However, I'm beginning to understand that the RMD can push us into a much higher tax bracket should we live that long. I will look into Roth Conversion Ladders.
Meanwhile you can spend from Taxable through 2028.
You could even convert 3 years of living expenses or 10 years. (Let growth grow in the Roth tax-free). You just have to track how much you converted each year and when you remove "converted dollars" from the Roth IRA. It is the growth in the Roth IRA that you can't spend until after 59.5.
Statistics: Posted by celia — Sat Oct 05, 2024 10:28 pm — Replies 16 — Views 885