Originally Posted by
tsquare
I disagree. Most people will be making less in retirement therefore should be in a lower tax bracket.
Call me a cynic, but your conclusion doesn't follow from your premise. Here's my prediction -- feel free to cut it out and save it for 10 years and tell me I'm wrong.
Today's
marginal tax bracket for a guy making $250k with a "reasonable" amount of deductions is lower than his
marginal tax bracket will be in retirement when his taxable income is $100k.
Originally Posted by
tsquare
I converted everything to a ROTH,
No you didn't. Your PBGC benefit will still be taxed as ordinary income. Same with your military retirement (if you have one). Same with all the money Delta has contributed to your 401k and DC plans. That's a lot of taxable income in retirement. Even if you converted some to a Roth, I'll bet you'll still have 80% of your income in retirement coming from taxable sources. That also results in 85% of your SS being taxed too.
Originally Posted by
tsquare
...and I now firmly believe it was a mistake.
You shoudn't. I really think you'll be glad you did, when Uncle Sam finally jacks marginal rates up to 50%+ as they were for the 60 years prior to Reagan. They will have to. We will be among the small group of people who actually have good income, even in retirement, to pay tax on.