My wife stopped contributing three years ago in order to pay for college tuition bills, so that helped. I was thinking of doing the same regarding conversion up to the 24% tax bracket, and maybe creep a little into the 32% bracket.How is an attorney going to help when experienced minds from all backgrounds are already looking at this post? Of course, the couple should have an estate plan. But the question here is about taxes.Hire a good estate attorney.Most of the "noise" will be consequential and make a difference!Ignore inconsequential noise re Roth conversions and IRMAA.
My suggestions are:
* Repeat your calcs without worrying about inflation. The tax brackets will automatically adjust themselves to take inflation into account.
* Consider that after you or your spouse dies, the survivor will have to file as Single. The space in each tax bracket is half as much for Singles compared to MFJ, which will likely have the survivor be pushed into a higher tax bracket.
* Your spouse may want to stop contributing so much to tax-deferred. I would just convert enough to get the employer's match. (Why make things worse?)
* Remember that your tax-deferred balances will continue to grow until your annual withdrawals are more than your annual growth. You may want to kick-start your conversions by converting twice as much as you've planned for the first 2 or 3 years.
I plan on rolling the 457 into a rollover IRA starting next year and taking out $100,00 to $125,000 per year starting in 2026. And if the market tanks, I'll consider taking more out and creep into the next bracket. I feel like I want this tax monkey off my back.
Regarding the estimated tax payment I'll make on these conversions, if I convert $100,000 in January, can I spread that $24,000 tax payment over the year or does it need to be paid by the 1st quarter due date?
If I can successfully convert all or most of my rollover IRA by the time my wife retires, then we will reevaluate converting her accounts. She is thinking of working till she is 60 but can retire at 55 with a reduced pension. If she retires at 55, it will free up more tax space for conversions, and we can start sooner on her accounts.
I take a little comfort in knowing what I will pay in tax today at 24% versus not knowing what it could be in the future, it certainly won't be lower for us. I watched a few videos with Ed Scott, and he advocates for Roth money over anything else. And for always paying the tax today versus in the future because of the unknowns when it comes to retirement savings. I know for some people it may make sense, depending on their balance and tax brackets and income.
We'll chip away at it. Thanks for all the help and suggestions!
Statistics: Posted by VINNY — Thu Oct 16, 2025 7:31 pm — Replies 40 — Views 2929