The tax rate paid is lower but the lifetime taxes paid start climbing higher. With regard to lifetime tax liability, there’s a sweet spot in the conversion strategy for most early retirees: Don’t go so quick that it triggers tax rates higher than 24% federal, but don’t go so slow on the conversions that investment earnings outstrip any progress on lowering the pre-tax account balances.
Author: Stop Ironing Shirts
Financial Independence requires paying the price.
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