Last year was my first year of retirement. While spouse will continue to work a few more years as she is younger, I am 65 and my retirement income consists if SS, a gov't pension, $2500 a month from regular TSP, and we have some rental income. That first year of retirement got hit with a 11K+ tax bill. In reviewing spouse's W4, we changed it to Head of Household as it withheld more. Was that a correct move? Also, as an aside, one of our continued disappointments is we can never take advantage of our Schedule E deductions because our combined incomes are/were too high. Also, the $2500.00 monthly amount from the TSP is a must right now to balance income with expenses given our home is in expensive HI. Thinking too of converting - over the next four year time period - the TSP to a Roth IRA, Good move? We own - or should I say, the baqnk owns - our home with anticipated payoff in 2037 as I am making extra principal payments. Any helpful suggestions would be beneficial. Thank you.
