Originally Posted by
Bucking Bar
I've begun diverting some money into Roth Accounts. Started thinking abuot what is going to happen when my little nest egg hits mandatory withdrawals and where tax rates are likely to be then .....
Bar,
I'm a HUGE fan of Roth accounts and I'm pretty aggressive about doing Roth conversions, including utilizing this methodology:
The Serial Backdoor Roth, A Tax-Free Retirement Kitty - Forbes
I recently learned that the DAL shares we received as a result of the DAL/NWA merger are eligible for conversion.
Probably the best deal out of the fiscal cliff legislation is a change to the law which liberalizes the rules on what accounts can be converted. The details, as far as Delta and the various 401K plans, haven't been worked out but I would expect Delta to make the necessary plan changes to permit employees to take advantage of this.
While I am frequently critical of ALPA, I do think they have a good handle on this and will push DAL to do the right thing.
With our massive ever-increasing national debt, I personally just can't see tax rates coming down in the future. I'd rather take the tax hit up front, let the money grow tax free, and withdraw it tax free.