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|Subject: Re: Poll: Did your 401k recover from the 2008 de||Date: 12/28/2010 6:50 PM|
|Author: madbrain||Number: 67999 of 77568|
I'm in a 28% federal bracket, 9.6% California. Since I itemize on my 1040, the actual combined tax bracket is 34.912%.
Getting the money into a Roth is definitely not my first choice. I'm still doing it because I have exhausted all pre-tax investment options, and it is much more attractive to me than using taxable accounts since the earnings in the Roth never get taxed. I only want to use taxable accounts for my e-fund, not investments. I have a bunch of money coming to me in the next year from the sale of my residence and my father's estate, so I can afford to do it.
I haven't consulted with a financial planner, though I have considered it before. My overall financial plan is certainly very unusual and calls for the following features :
- saving as much as possible in tax-advantaged accounts while I'm working
- early and short 100% self-funded retirement using SEPP distributions from Roth IRA and 401k. How early, I'm not sure, but probably between age 50 and 55.
- good probability of dying before age 62, before I could see a cent from social security retirement
- good probability that my partner will die even before I will, and that I can thus die broke or leave all my assets to charity since we don't have children
- good probability of being in a lower tax bracket at retirement, if same-sex marriage passes in our lifetime at the federal level
For 2010 I saved $45241.23 for retirement.
$17422.33 after-tax 401k which I will roll into a Roth IRA very soon
$16500 pre-tax 401k contributions
$6318.9 matching 401k
$5000 in non-deductible IRA contributions which I rolled into a Roth IRA
$0 in taxable accounts
For 2011, I will increase the after-tax 401k contributions so that my total retirement savings will be $54,000. I can probably keep this up for at least the next 3-4 years given the money I have coming from my old residence and my father's estate.
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