I'm in the military and plan on doing at least 20 years. This would give me a pension of $65,000 in today's dollars, which puts my marginal tax rate in retirement at 15%.
Early retirement is off the table, I like my job, and not to sound full of myself, but I think given the shortage of doctors I think it would be selfish of me to retire early given how much society
I live comfortably on $48,000 post tax now, and don't see any upward creep occurring that would continue into retirement.
I currently put 20% of my take home into a ROTH 401(k) plan (the TSP), and my effective tax rate is just 4% (marginal of 15%). I'll be bumped into an effective tax rate of 11% soon (marginal of 25%), and an effective tax rate of 15% shortly there after with a marginal tax rate of 28%.
When I get the bump that takes me into the 25% tax bracket, would that be a good time to shift to the Traditional 401(k) as my marginal tax rate in retirement (in todays dollars) will be only 15%? I'll have to have my IRA as a ROTH due to income levels, but thought it would be prudent to have some of my retirement savings in tax deferred status as it seems like I'll have a lower tax rate in retirement (plus I am not sure I'll be tapping retirement at all given my pension.
Thanks.
CleanShaven