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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76422  
Subject: Re: Am I saving too much in retirement accounts? Date: 8/30/2014 12:52 PM
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It's a wash.

As you noted upthread, it's not a wash if your tax bracket changes in retirement, which it does for almost everyone.

Typically, in your earning years you are in a higher marginal bracket, making it better to hide money from the tax man at that point. In your retirement years you are quite likely to be in a lower marginal bracket, making it better to pay taxes then.

Personally, I have gone from the highest possible bracket during my peak employment to either the lowest, or zero in a few years by arrangement of my income. I am getting close to the point where I will have RMD's, but even so the tax bite will be far lower than it would have been 20 years ago.
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