Are there any formulas or guides for calculating whether to withdraw from taxable brokerage first vs. contributions to Roth IRA (via MBR Roth conversions) for liquidity purposes pre-retirement? I assume some of the parameters are current and future tax rates and years from retirement, but trying to figure out if there's a clear formula here.
Our situation:
Our situation:
- We need to withdraw $X amount for general spending, where $X can be either from our taxable brokerage or fully covered from MBR contributions rolled over to a Roth IRA.
- Gains in taxable are mostly long-term with very few losses for TLH.
- Ignore any potential stepped up cost basis after death.
- MBR contributions had automatic Roth conversion.
- Age 40, retirement date unknown
- Currently in the highest tax bracket in CA so cap gains would be subject to 20% + NIIT
Statistics: Posted by datascientistdude — Mon Aug 12, 2024 4:06 am — Replies 1 — Views 220