So, roughly 97% of my portfolio money (that is, money not tied up in, say, my house, and money not in various emergency funds) is in my 401K. We could discuss the reasons, but what's done is done.
I will be 59.5 soon, so if I needed to pull some of that money, it will soon be possible. (My understanding is that my company does support a limited number of in-service withdrawals.) So that's not an issue.
I'm just posting because I'd like to see if I've forgotten any of the reasons why funds-on-which-taxes-have-already-been-paid are useful, as I decide whether, and when, to do anything about this. I should add that when I retire, I will have a modest-to-moderate pension, which, while dandy, will tangle up efforts to control income.
- Regular tax bracket stuff.
- Income control for ACA subsidies.
- - Especially if the subsidy cliff happens as expected.
- IRMAA
- The ability to pay capital gains tax on some gains instead of ordinary income tax.
- Edited to add: Heirs.
What else?
I will be 59.5 soon, so if I needed to pull some of that money, it will soon be possible. (My understanding is that my company does support a limited number of in-service withdrawals.) So that's not an issue.
I'm just posting because I'd like to see if I've forgotten any of the reasons why funds-on-which-taxes-have-already-been-paid are useful, as I decide whether, and when, to do anything about this. I should add that when I retire, I will have a modest-to-moderate pension, which, while dandy, will tangle up efforts to control income.
- Regular tax bracket stuff.
- Income control for ACA subsidies.
- - Especially if the subsidy cliff happens as expected.
- IRMAA
- The ability to pay capital gains tax on some gains instead of ordinary income tax.
- Edited to add: Heirs.
What else?
Statistics: Posted by BirdFood — Fri Jul 05, 2024 5:16 pm — Replies 21 — Views 1896