I don’t follow the NPV argument
I see it as simple tax rate arbitrage
I’m 58, married. My 401K is ~2.5M with RMDs 17 years away
If I do nothing, that might be 10M at RMD time
And then I pass away, leaving my wife to take RMDs and file single
On the front end (money in) you know your income, your marginal rate, your filling status
As your balance grows you may well move up a bracket. Filling single shrinks the bracket but not the RMD
Lumpy expenses are another plus to having more in Roth
I see it as simple tax rate arbitrage
I’m 58, married. My 401K is ~2.5M with RMDs 17 years away
If I do nothing, that might be 10M at RMD time
And then I pass away, leaving my wife to take RMDs and file single
On the front end (money in) you know your income, your marginal rate, your filling status
As your balance grows you may well move up a bracket. Filling single shrinks the bracket but not the RMD
Lumpy expenses are another plus to having more in Roth
Statistics: Posted by bradpevans — Fri Sep 13, 2024 6:32 pm — Replies 131 — Views 12375