Well my math was wrong. If your portfolio at retirement is about $636,000 and you take out 4% from the 401(k), then you are withdrawing about $25k and getting taxed at the zero (for the standard deduction) and 10% brackets. So up until that point, the 401(k) seems better because your marginal rate now is 12% but in the future would be 10%. Once you get above that, 4% withdrawals will put you at the 15% marginal rate (expected in 2026), so adding to a ROTH at that point makes more sense because you'd be paying 12% now instead of 15% in the future.I would spend less than $80k in retirement. Yes, my 401k is less than $500k. It isn't even $100k. My 401k which includes Publix stock given to me is greater than my brokerage + roth accounts.
Does that make sense? Sorry for the confusion.
Statistics: Posted by typical.investor — Tue Mar 12, 2024 11:44 pm