No. of Recommendations: 5
One big reason to pay taxes now vs later: Later, you have an RMD that could force your SS into a higher taxed category,

Got news for you. (It was news to me, too, when someone mentioned it and then I had to go check it out for myself.)

If you have above-average income --and who here doesn't plan on having above-average retirement income -- the amount of your SS benefit that gets taxed starts off soon and accelerates rapidly.
Even though you are in the 15% bracket, as the amount of your SS that gets taxed increases (due to increased income) your *total* marginal rate is just a tad under 28%. Once the amount of SS subject to tax gets to 85%, your marginal rate drops back to 15% until you hit the 25% bracket.

At $50K ordinary income and $36K SS income, with standard deduction MFJ, the max of 85% of the SS is taxed.
At $70K ordinary and the same $36K SS, you are just in the 25% bracket.

At those income levels, it's easy for your income to jump $20K one year, a large capital gain will do it. Or a small(ish) Roth conversion.

there's more to think about than just "my marginal rate now vs. my anticipated marginal rate later."
Right. As shown above the tax bracket isn't always the the same thing as the marginal rate. Your marginal rate is how much the IRS takes of each additional dollar of income.

or incur higher taxes on Medicare.
But that's a relatively high income. The breakpoints are $85K & $107K for single, $170K and $214K for joint.
The medicare premiums are $134, $188 and $268. Even the highest -- $268/mo -- is much less than we paid before going on Medicare. Ours was about $900/mo. So it's rather a first world problem.

There are many reasons to find out "what it is that I don't know, and don't know that I don't know."
I sometimes wonder how much of these details you would actually get from your $200/hr FA. My experience is that they mostly try to convince you to let them manage your money. For a fee.
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