[quote=flu]
Roth hasn’t been around long enough for most of the baby boomers and pre-baby boomers to have meaningfully been useful. Exceptions are baby boomers that took were slightly more proactive and rolled over 401k/IRA’s into Roth a few years before the mandatory distributions. As far as house, retiring folks in CA can do transfers between counties to keep their prop tax rates so I agree with you there. I was only talking about 401k/IRA overcontributions, which is entirely possible. My relatives called it the 401k government scam.. Help the government save to pay more taxes post retirement.
We’ll see in our generation what happens there.[/quote]
AFAIK, most of the baby boomer 1st gen Asian immigrants do not max out their 401k until very recently. Most of the 1st gen immigrants who came here in the 70s/80s sent a lot of their money back to their home countries and spent a lot of money bringing over their relatives that didn’t come in the first wave. Only after all of this did they start to seriously contribute to 401k/IRA. So, in the grand scheme of things, I don’t think they can over contribute to 401k, since they started way too late. As for our generations, I’m fully invested only in Roth, so no RMD for me.
BTW, if they continue to live frugally like they have been, then RMD + SS will be more than enough for them to live on. At that low of an income bracket, they probably won’t get tax very much.
