Fortunately*, inflation will decrease the value of their money and increase tax brackets, so there will be tax-space wiggle room. $73k/yr will be worth about $35k in 2025 dollars. 2million 2058-dollars will be about 890k in 2025-dollars. Inflation is sneaky. (Inflation calculator used.)If OP has 800K now, that could easily translate to 2-3 million by the time they reach 72 and they have to start taking RMD's. If it's all in tax deferred, assuming the starting point then is 2 million, rmd's will be starting about 73K a year and growing... depending on other things, that could easily turn into a tax bomb down the road. YMMV....
* For a certain value of fortunately....
Statistics: Posted by MJS — Thu Jan 02, 2025 2:35 pm
