I'm curious about how your withdrawal tax bracket is determined for your 401k
Here are the scenarios:
A) Let's say I am making $100,000-$200,000 per year for my whole career with a Traditional 401k. I don't remove anything from it before age 59.5. At that age, I retire. How much--or in what bracket--would the 401k withdrawals be taxed?
B) Just like scenario A, let's say I am making $100,000-$200,000 per year for my whole career with a Traditional 401k. Around age 58, I switch jobs and start making $30,000 per year. I retire at age 59.5 again. How much--or in what bracket--would the 401k withdrawals be taxed? Is it the same or different as scenario A?
In other words: how is your retirement/401k tax bracket determined?