Switch savings to Roth 401K and brokerage accounts from pre-tax accounts.
Need some opinions on our situation. Wife and I have saved up combined 1.2 million in pre-tax retirement accounts. Our combined income is ~300K. My wife gets no match from her employer for her contributions and no access to Roth 401K. I get up to 10% of my total compensation matched if I contribute at least 5% of my salary+bonus and have access to Roth-401K. We are in our mid 40s. Live in a MCOL city. No state income tax. Our mortgage is paid off.
I think we have saved too much in pre-tax accounts based on some light modelling with Claude over the past weekend. I am planning to switch to Roth 401K immediately. My wife will switch to saving into a regular brokerage account. We will take a massive tax hit from this decision right now. But based on the projected tax hit in our older years from the SS payments and the small Govt pension my wife is eligible to, this sounds like a good idea on paper. Would love to hear from folks who have been in our shoes.