You have won the game. Obv you and wife can and should do as you wish. But with your resources, you can easily afford to purchase awesome health insurance. So if she wants to work four more years great but doing it for the insurance doesn't really make sense (at least not to me.)
You need to look at what your RMDs will be 15 or so years from now. Should you pass, she is going to have some major income and thus very possibly into the 35% or higher tax rate. You really can't avoid this totally (and it is a nice problem to have). But were she to retire, you could convert up to the top of the 24% bracket (might even make sense to go to 32%) to pull down the pre-tax and reduce future taxes on those funds. Since DD is making even more than DW, she is likely to always be in a bracket at least as high as yours. So if the money all passes to her, the same (maybe more) tax savings should accrue.
This are just very off the cuff numbers. So I could be entirely wrong. But IF (and that is the key questions imo) you wife would like to retire earlier, you could use the years to convert more. Even w/o such, it might make sense to convert what you can such that DD eventually benefits.
You need to look at what your RMDs will be 15 or so years from now. Should you pass, she is going to have some major income and thus very possibly into the 35% or higher tax rate. You really can't avoid this totally (and it is a nice problem to have). But were she to retire, you could convert up to the top of the 24% bracket (might even make sense to go to 32%) to pull down the pre-tax and reduce future taxes on those funds. Since DD is making even more than DW, she is likely to always be in a bracket at least as high as yours. So if the money all passes to her, the same (maybe more) tax savings should accrue.
This are just very off the cuff numbers. So I could be entirely wrong. But IF (and that is the key questions imo) you wife would like to retire earlier, you could use the years to convert more. Even w/o such, it might make sense to convert what you can such that DD eventually benefits.
Statistics: Posted by LotsaGray — Tue Oct 15, 2024 12:04 am