The SEPP/72t exceptions to IRA/401k/403b withdrawal penalties before age 59-1/2 were a tight constraint when I retired in 2018, just before age 53. Technically, I'm on a fixed income for 5 more years, but I'm withdrawing more than my previous take-home pay (barely), and my net worth is still rising with the stock market (but I'm not contributing more, so the margin of safety is lacking).
Having an older husband who already bought a house certainly helped me reduce living expenses, but maximizing my tax-deferred contributions also reduced my taxable income quite a bit over the 28 years at Stanford. At one point, I checked out Stanford's 403b borrowing rules, not because I needed the money, but because loan interest repayment to yourself is a backdoor extra contribution (but not worth the fees and hassle, since fixed interest rates rarely beat the stock market).
Watching the mis-steps at the start of the pandemic (in workplaces, theatrical groups, and dance or social clubs), I'm so glad that I wasn't in charge. Stanford at first told only those who tested positive to stay home, before the testing debacle. The Bay Area lucked out, with low-ish infection rates until last month, but I still wouldn't want to be responsible for a super-spreading event.
Also, don't forget about Required Minimum Distributions. Paying taxes on withdrawals or Roth conversions in lower-income years can reduce future RMD tax brackets, and withdrawals can be invested rather than spent. Time is money, and low-income years are a use-or-lose resource for deferred taxes.
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Date: 2021-01-03 09:36 pm (UTC)Having an older husband who already bought a house certainly helped me reduce living expenses, but maximizing my tax-deferred contributions also reduced my taxable income quite a bit over the 28 years at Stanford. At one point, I checked out Stanford's 403b borrowing rules, not because I needed the money, but because loan interest repayment to yourself is a backdoor extra contribution (but not worth the fees and hassle, since fixed interest rates rarely beat the stock market).
Watching the mis-steps at the start of the pandemic (in workplaces, theatrical groups, and dance or social clubs), I'm so glad that I wasn't in charge. Stanford at first told only those who tested positive to stay home, before the testing debacle. The Bay Area lucked out, with low-ish infection rates until last month, but I still wouldn't want to be responsible for a super-spreading event.
Also, don't forget about Required Minimum Distributions. Paying taxes on withdrawals or Roth conversions in lower-income years can reduce future RMD tax brackets, and withdrawals can be invested rather than spent. Time is money, and low-income years are a use-or-lose resource for deferred taxes.