Backdoor Roth IRA

[RichTales]

Everyone should consider that, while you're young and working, you have more deductions. Home mortgage interest, children, etc...

Once you retire you will probably have nothing but the standard deductions.

We had our funds in 401's that were tax deferred. Now, while pulling that money out the best we can, we're in the same darn tax bracket we were in while working. And, we have to pay tax on part of our SS too.

[mathjak107]

your experience is typical for most with deferred accounts.

25-30 years of a 40 year career may have been at far lower tax brackets and income too. since as t-rowe found most of us are in the same tax bracket when they retire.

that bracket is generally somewhere around those final peak years making your tax bracket in retirement actually higher than your average tax bracket spanning 40 years of a ramping up income that was lower than now for most of it.

that is a factor up until the t.rowe study that no one considered including myself..

our final lifestyle and income needs are in the ball park of 80% or so of what we were earning. many times there is no bracket change downward on the bulk of the income, if anything a few marginal dollars at the top may come down.