The strategy is basically the same if planning on staying single, only simpler. The person must get a handle on their marginal tax rate and projected tax rate in retirement, and decide how to split up workplace contributions between Roth (if offered) and pre tax. Contribute enough to the workplace plan to max out the employer matching contribution. Same thing with IRA contributions – if a Roth contribution is preferable determine if income is low enough to make regular Roth contributions, if not use the back door method if possible. In the long run you want to pay about the same marginal tax rate throughout your life, so when you retire you should have a window of a few years where your income is low enough to do Roth conversions. This window starts when you retire and before you collect SS benefits and before RMDs begin. Every dollar converted will reduce future RMDs. Determine when you want to start SS benefits – if you can afford to delay to 70, consider that. Any conversions done will raise taxes and those taxes should be paid from current savings, not be withholding from the TIRA conversion distribution. Any plan needs to be reviewed annually, because things change with health, jobs, etc.

• Flag as spam
• Log in to Reply