Personal Investments • Max out Roth 401k? Convert to top of 24% bracket? Help!

Hi All, 

We're in our mid 50s, married and living in Texas.
 
INCOME:
Wages $142K (Plan to mostly retire in 2026)
Pension $27K (Increasing to $39K in 2024 and finally $77K in 2025 continuing for life)
Div/Int $53K

Therefore estimated AGI:
2023 $222K
2024 $234K
2025 $272K
2026 $140K

For what it's worth, current social security estimates at age 70 are $45K starting in 2039 and $42K in 2040. 

INVESTMENTS (Vanguard)
Taxable $2.55M (Total US and Total Int'l)
Traditional IRA $1.5M (Total Bond and TIPS)
Roth $535K (Total US)
HSA $100K (Total US)
Cash $75K

Our Questions:
1. We have access to one 401k plan starting in 2024. Should we contribute beyond the 4% employer match? Tax deferred or Roth? Our current plan is to contribute the maximum $30,500 to Roth and make up any budget shortfalls from our cash and Taxable accounts. 

2. Of course, tax rates may or may not increase in 2026 and in the future generally. Should we do Roth conversions to the top of the 24% bracket in 2023 thru 2025? Do we care that this triggers NIIT?

We've used on the forum for many years, it's such an incredible resource. These are our first questions. 

Thanks so much for your thoughts! 

Statistics: Posted by SeanATX — Tue Dec 26, 2023 11:09 am — Replies 0 — Views 27

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