Author Topic: Be My Future Tax Adviser  (Read 1451 times)

Peter Parker

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Be My Future Tax Adviser
« on: March 14, 2016, 08:17:06 PM »
When we retire, my wife and I will have pensions that will equal about 80% of what we earn now.  I think our pension will cover about 90-95% of our monthly expenses (living at a pretty comfortable level).

We also have 2 457 accounts and 1 403b account.  Our plan is to sporadically use this money to cover any splurges (big trips, etc) and any shortfalls until we claim Social Security at age 70 (assuming it is still available).  We plan to retire in seven years at age 62, so we will have 8 years in which we may (but not necessarily) need to tap into our 457 and 403b accounts.  Assuming Social Security is still available, we will have over a 100% of what we are making now on a monthly basis....

My Questions:

What would you do with the money in our 457/403b accounts upon/prior to retirement to help minimize taxes?

Is there some way to get this money into a Roth? 

If I can get it into a Roth, should I?

If I don't need to take RMD at 70 1/2, wouldn't it be better to let ride in a roth?

If a Roth isn't available, is there a better tax advantaged way of handling these accounts>?



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Re: Be My Future Tax Adviser
« Reply #1 on: March 14, 2016, 09:02:32 PM »
See - it can help with just this sort of question.

For reading, see (many principles apply even though you are older than 59.5).

In short, take advantage of any relatively low tax years to move money from your traditional to Roth accounts.

Also note the R in RMD stands for Required.  The IRS pretty much makes you an offer you can't refuse on those.