On 02/03/2016 02:08 PM, DerbyDad03 wrote:


ns the issue I am talking about.

Let's say your annual AGI is $5K lower than the top of the 15% bracket.
Right now, all of your income is taxed at 15%. Now let's say that you
estimate that you will need a roof in 3 years to the tune of $15K.

(To keep the numbers simple, let's ignore the fact that you need to
take out more than $15K to *net* $15K after taxes by assuming you
have other cash with which to pay the taxes.)

If you withdraw that $15K out in one year, $5K is going to be taxed in
the 15% bracket, but the remaining $10K is going to be taxed at 25%.

However, if you withdraw $5K extra per year for the next 3 years, the
entire $15K will be taxed at 15% because you didn't bump yourself into
a higher bracket in any given year. In the long run, you'll save yourself
$1000 in taxes.


I have enough in there that if I need to withdraw $10k or so, it won't
make much of an impact .

Maybe not an impact on your "savings" but it may cost you more in taxes.



Ok thanks for the advice...

I better start saving up now