What are the pros and cons of having a higher taxable income during retirement?

Asked Nov 07 '17 at 06:58

Active Nov 07 '17 at 07:07

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I am listing the pros and cons of pre-tax 401(k)/IRA (a.k.a. traditional 401(k)/IRA) vs. Roth 401(k)/IRA, in addition to what I read on choose Roth 401(k), or traditional 401(k).

One of the questions that came from it is: what are the pros and cons of having a higher taxable income during retirement? (aside from the tax paid on the income from the pre-tax 401(k)/IRA)

For example, I read on https://www.schwab.com/resource-center/insights/content/roth-vs-traditional-401-k-which-is-better (mirror) two downsides of having a higher taxable income during retirement:

Increase [...] taxes on Social Security benefits.

Could also increase the costs of your Medicare B premiums (mirror) in retirement.

What are other pros and cons of having a higher taxable income during retirement? (I'm aware that there could be no upside)

edited Nov 07 '17 at 07:07

asked Nov 07 '17 at 06:58

Franck Dernoncourt

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I haven't found any solution so far. – Franck Dernoncourt Dec 27 '17 at 20:22
So I am still interested if someone has any idea. – Franck Dernoncourt Dec 27 '17 at 20:22
Will your retirement income be much lower than your working income (if so you'd have a lower marginal tax rate)? Do you expect tax rates to rise or fall over the decades (tax rates for upper income folks are at historically low levels in the US now)? – Brian Borchers Jul 07 '19 at 03:34

What are the pros and cons of having a higher taxable income during retirement?

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