The techniques surrounding this concept have piqued my interest.
I am coming to the end of 40 years as an employee. Grateful to have SS and my 401k/IRAS promising me financial security.
But, I have almost 0 in taxable. Literally 0 LTCG. That 80K tax free will never apply to me.
I think I am OK with my non-unicorn status. But not completely sure. Maybe someone has insights.
Our plan was always to fund 401K at the level that would predict a comfortable retirement after long careers. That got us corporate matching and tax-deferral. But that was it for retirement $. The rest of our income would go for living (kids, house, fun...). No regrets with that balance. I consider myself very lucky.
Over the years, I never put a dime of retirement money into taxable.
Now, on the verge of retiring, if I want to put something into a vehicle that will return tax-free income long term, I could do a Roth conversion on as much as I want. So, there's no sense putting anything in taxable now, either.
Bottom line: FOR ME, adding retirement funds to taxable didn't make sense then. And it doesn't now.
Right?