u/Better-Syllabub8852

part time work in retirement to manage RMDs

55M. 400k/yr salary, maxing pretax accounts. I have substantial savings in a 401k and additional savings in rIRA and other vehicles. I have no money in my pretax tIRA, allowing for annual backdoor rIRA deposits. RMDs will begin when I turn 75. I like my work and could probably work (very) part time into my old age.

I plan to retire at 65 and do conversions from 401k to a rIRA in my early retirement years to reduce RMDs. As currently anticipated, the RMDs will be far in excess of what I need to live unless the market implodes.

I have read that I could defer 401k RMDs by working part time. If I did part time work starting around 75, could I defer RMDs and continue doing Roth conversions? The work itself would not be onerous to me, I would likely enjoy it as an adjunct to my retirement activities.

I know that my future employer's 401k plan must:

Accept rollovers (unless I keep working with my current firm)

Allow for RMD deferral with part time work

And permit in-service conversions to rIRA

Does this plan make any sense or am I just complicating my retirement for no reason?

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u/Better-Syllabub8852 — 14 days ago