FI Legislation (Early 401k Withdrawal)

I have no problem using a Roth conversion ladder if needed. It would definitely be great to have some FI minded folks in DC, but I have no idea how feasible that is. This does bring up a great point on political risk that I think is worth discussing. Many people take advantage of the LTCG's tax rate being so low in their retirement planning and withdrawal strategies. Just a few days Joe Biden said this in an interview:

"There’s overwhelming evidence now that the idea that the capital gains tax is promoting growth is just not the case. We should charge people the same tax for their capital gains as their tax rate is. And I think we should raise the tax rate back to, for example, I take it back to where it was before it was reduced."

Regardless of your political stance, there is a chance that something you are planning on now could get changed by either party. While this might not fundamentally change anything you're doing, political risk is very real and should be at least considered in your FI planning. For me, I may be going back to school in a few years, and living off my wife's income. I have money in a Traditional 401K. My original plan was to do a ROTH conversion after our incomes dropped in our RE stage. After thinking of the risk associated with politics, I am seriously considering the ROTH conversion early in the next few years when I go back to school and my tax bracket drops significantly.

/r/financialindependence Thread