Withdrawal calculator

[Bonasababy]

yes

Ditto.

When you sit down with retirement planners they will talk about different sources and how you want to draw from each to minimize taxes in retirement. Having some in Roth is a great benefit there.

Roths are also great for covering large unplanned expenses that if pulled from pre tax funds would raise your taxes more...going into a higher tax bracket for a lot. Also can raise what you have to pay for medicare.

 

[Robg2]

I get it but still question the value to the average person.

4x poverty level is around 86k for two people. Not a great deal of $$ and I might question whether people who can do that have enough in their Roth and/or other retirement accounts to last 30 ...or maybe 40 years, if retiring before 59 1/2.

More power to you if you can do it. I can see it while one of a couple is still working maxes out any retirement plan match and more along with drawing roth contributions to allow you to get cheaper ACA coverage, assuming the workers health coverage isnt better than what ACA choices offer.

I guess the broad point I would make is you better be thinking...and planning in detail carefully...of long term impacts if you take Roth contributions out early.

Methinks you are over thinking it. For health insurance costs you only have to make it to 65, then Medicare will kick in.

My main point is that people that want to retire early should be thinking of ways to get a big Roth in addition to however they were planning on funding their retirement. Then tax-manage their retirement income to avoid huge expenses like health insurance. If you want to do this, start planning now to build your Roth.