The wiki on Traditional vs Roth has the following information for estimating future marginal tax rate:
https://www.bogleheads.org/wiki/Traditi ... l_tax_rate
https://www.bogleheads.org/wiki/Traditi ... l_tax_rate
A major driver for whether or not I should do Roth conversions up to 24% is based on this estimate. What are your own thoughts/ estimates on what you think the ~24% tax bracket will be like in the future?Estimating future marginal tax rate
Estimating your future marginal tax rate is considerably harder than for today, and high accuracy should not be expected. There are two parts to the estimate: 1) your taxable income, and 2) how tax law will treat that income. While both parts may have high uncertainty, great precision is usually not needed to make a reasonable estimate.
For future tax law, using this year's version is generally recognized as a good starting point, but if you have strong feelings for how tax rates and laws will change in the future, you could make your own calculations. If you are willing to use this year's law, follow the procedure in Calculating marginal tax rate now but use your estimated future income, filing status, number of dependents, etc.
Statistics: Posted by ThankYouJack — Fri Aug 02, 2024 5:54 am — Replies 5 — Views 322