Hi all looking for some advice - just learning and realizing how little we know appreciate any help!!
Married couple in PA 59/ spouse 57.
Household income $286k (24% bracket ). All figures below are projected future dollars at retirement (\~8 years).
Projected at retirement:
\-approx 2.3M in 403(b)s (about $250 Roth 403 B + $2m pre-tax).
Pension: $1,000/mo.
Social Security plan: me at 69 (\~$3,700/mo), spouse at 70 (\~$4,600/mo).
Spending goal early retirement: \~$13k/mo.
Plan: build a 2-year cash runway so we can live off cash + pension in the first two retirement years and use the 403(b) mainly for Roth conversions (aiming to fill the 12% bracket as much as practical).
Cash target: \~$425k at retirement (future dollars). Current cash: $27k at Marcus in HYSA.
QUESTIONS :
1 - To fund the cash plan , we’re considering pausing/reducing current Roth 403(b) contributions ($6,960/yr me + $10,000/yr spouse) and redirecting the increased take-home to cash. Should we stop the Roth portion of our 403 B contributions to build our cash ? We would continue our pretax contributions as usual
2- Any pitfalls (IRMAA/Medicare, sequencing conversions, etc.)?
THANKS for any thoughts !!