Not sure if this is right place to ask, but here goes.
I am retired, DW will work for another 2-3 years. She now has the opportunity to particiupate in company's deferred comp plan. Non qualified. Not an investment plan. No matching. Deferred amount receives interest only, 10% for 2025, I assume that varies over time. We are not concerned about company's health or risk of bankruptcy, but who knows?
DW wants to defer "some" to offset the amount I will receive in 2025 from social security. Worried that my new "income" will bump us to the 32% tax bracket. Our goal has been to try to stay in 22-24% long term. It's where we've been for several years. We are close enough to 32% now to not even try to do any Roth conversions, but that's another thread altogether. I calculated that my SS would indeed push us to 32% next year, pretty solidly.
Just curious if this is a sound plan, or a mistake waiting to happen in the future? TIA!
I am retired, DW will work for another 2-3 years. She now has the opportunity to particiupate in company's deferred comp plan. Non qualified. Not an investment plan. No matching. Deferred amount receives interest only, 10% for 2025, I assume that varies over time. We are not concerned about company's health or risk of bankruptcy, but who knows?
DW wants to defer "some" to offset the amount I will receive in 2025 from social security. Worried that my new "income" will bump us to the 32% tax bracket. Our goal has been to try to stay in 22-24% long term. It's where we've been for several years. We are close enough to 32% now to not even try to do any Roth conversions, but that's another thread altogether. I calculated that my SS would indeed push us to 32% next year, pretty solidly.
Just curious if this is a sound plan, or a mistake waiting to happen in the future? TIA!
Statistics: Posted by McDougal — Tue Dec 03, 2024 8:58 am — Replies 0 — Views 32