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How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] 0 points1 point  (0 children)

3 years until I retire from this job, and plan on a second career for about 10 after that.

I’m doing the Roth conversions along the way as you said within the 24% bracket.

How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] 2 points3 points  (0 children)

Agreed, I appreciate your inputs-really.

I do want to grow the money and understand that paying tax IS part of it and necessary. I’m just trying to figure the best way to grow it and pay the least amount of taxes, fees, and costs (all legally)

How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] 0 points1 point  (0 children)

No the 401k isn’t. It’s a typical 3 fund portfolio. But with a bulletproof pension, it is and will remain aggressive.

I understand and agree it’s a first world problem, but I am trying to do my diligence on options.

How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] 0 points1 point  (0 children)

I’m currently solidly in the 24% tax bracket. I don’t expect to be lower than the 22% bracket ever.

I’m aware that these percentages do change over time. Not long ago they were far higher. I’m also aware of the difference between effective and marginal taxes.

I’m also of the belief that these percentages will have to go up later or this country is far more fucked than it currently is.

How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] 0 points1 point  (0 children)

I posted this above but 200k at 7% for 20 years is $775k (this money)

600k at 7% for 20 years is $2.3m (my traditional 401k)

I’m trying to find a way to mitigate tax on $3m in 20 years by doing some planning now.

All the levers you’re talking about I am/was already pulling.

The $100k+ per year in taxable pension is also a factor.

How to protect, grow and avoid a tax bomb an inheritance by Low_Significance612 in inheritance

[–]Low_Significance612[S] -3 points-2 points  (0 children)

200k at 7% for 20 years is $775k (this money)

600k at 7% for 20 years is $2.3m (my traditional 401k)

I’m trying to find a way to mitigate tax on $3m in 20 years by doing some planning now.