Hi all,
Not sure if this is better here or in the tax form, but here goes...
We are in the 12% bracket right now for federal taxes after maxing a 403(b), 401(k), 457, and putting mandatory amount into a 401(a). We are able to also max an IRA, but my question is which one? We have both a traditional and a Roth open right now so I know that makes a backdoor Roth an issue. I started on early on when I knew *something* was better than *nothing* but with no clear understanding beyond that - so now we have almost half of our current network in RIRAs, although the last few years I switched to tIRAs.
My estimation is that we will withdraw around $60k per year for retirement from these accounts (current dollar worth) (if we do get SS, then I would reduce the withdrawal to account for that income and we aren't anticipating any pensions). From my understanding, with current dollar amounts, the first $77,400 of long-term gains is tax-free for a married, filing joint couple. So, if we are taking out less than that, we would be paying no taxes on the money (I'm going off of GoCurryCracker here for this understanding, but any mistakes are mine).
Thus, if we are paying $0 in taxes when we take the money out, we should continue to contribute to the traditional IRA since that goes in with $0 taxes. Can someone confirm this logic? Is there anything else I need to account for? In general, for those expecting to take out less than $77k in retirement, what is the value in a rothIRA?
tl;dr - expect to pay $0 in taxes upon retirement, should I do a tIRA or rIRA now?