So the single biggest jump in federal tax brackets is from 15% to 25%, giving the middle class quite the shaft. Up until now I have been ROTH-ROTH-ROTH as I only pay federal taxes, and have stayed under $74,900 in taxable income; however, I will soon be cresting that cap and will have a marginal tax rate of 25%, which will be slightly higher than what I estimate I'll have as a marginal tax rate in retirement.
In retirement I plan on getting a pension that puts me in the middle of the 15% bracket, but I'll also be paying state taxes so my effective marginal tax rate will be 24% or so for each dollar I pull from my retirement accounts.
I had honestly thought about never taking anything out of my ROTH's, but seeing how the federal govt is talking about making distributions mandatory on them they've lost some of their appeal.
Granted tax rates can/will go up, but after seeing how they tried to double tax 529's I'm kind of on edge here.
So should I switch to get some tax savings while I can?