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Delayed Social Security & RMD
Old 05-27-2014, 12:41 AM   #1
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Delayed Social Security & RMD

If I delayed SS to age 70 the higher benefit would dovetail with the first year of the required minimum IRA distribution causing my taxes to go way up. Appears to be a windfall for the government.
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Old 05-27-2014, 12:48 AM   #2
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Did you think you were Christopher Columbus?
SS at 70 and RMDs - double tax 'whammy'?
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Old 05-27-2014, 01:00 AM   #3
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There are tons of articles on the internet about the benefits of delaying SS... but none of them I have read even mention RMD.

I've been pondering it for quite awhile and decided to take early Social Security.

I'm single and neither of my parents lived to the break even age.

My sister died a natural death at age 66.

I have zero debt [mortgage paid off] and live in a less expensive part of the country, so I don't need a high income to live comfortably.
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Old 05-27-2014, 01:02 AM   #4
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Quote:
Originally Posted by kaneohe View Post
Did you think you were Christopher Columbus?
SS at 70 and RMDs - double tax 'whammy'?
Thanks for the link
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Old 05-27-2014, 01:56 AM   #5
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But you can also expect that if you are waiting to take SS, then you are probably taking distributions from IRA and 401k that will reduce your RMD later. Or you could be doing Roth conversions. Bunching up income will raise your taxes, but delaying SS doesn't mean you have to bunch up income.
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Old 05-27-2014, 02:07 AM   #6
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.

In addition to early SS I will be withdrawing a few thousand
from my traditional IRA each year being careful to stay under
the tax radar. I intend to stay in a zero tax bracket.
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Old 05-27-2014, 05:27 AM   #7
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This topic is under discussion here SS at 70 and RMDs - double tax 'whammy'? so to avoid confusion we'll close this thread.
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