SWR and Taxes - need some basic input

[pb4uski]

Well by the time you hit your 70s, you would expect appreciation....

It depends on your AA in your taxable accounts and how often you trade/rebalance/take withdrawals.

I have been doing some selling and repurchasing to step up my basis while taking advantage of 0% LTCG taxes if you stay in the 15% tax bracket so even with the great equity market results of the last two years my basis is ~80% of value so only 20% of any withdrawal would be taxable gain.

 

[explanade]

It depends on your AA in your taxable accounts and how often you trade/rebalance/take withdrawals.

I have been doing some selling and repurchasing to step up my basis while taking advantage of 0% LTCG taxes if you stay in the 15% tax bracket so even with the great equity market results of the last two years my basis is ~80% of value so only 20% of any withdrawal would be taxable gain.

So you're selling and repurchasing at a higher cost-basis?

OK so that lowers the gains on future sales but aren't you paying gains when you sell now?

As far as making sure your portfolio is eligible for LTCG, maybe stop the repurchases a year before you retire?

 

[pb4uski]

So you're selling and repurchasing at a higher cost-basis?

OK so that lowers the gains on future sales but aren't you paying gains when you sell now?

As far as making sure your portfolio is eligible for LTCG, maybe stop the repurchases a year before you retire?

Yes, selling and purchasing the same ticker but realizing the appreciation as a gain. Wash sales for gains are ok - not for losses though. If I keep my TI in the 15% tax bracket then the LTCG get a preferential rate of 0% (rather than 15%).

The step-up in basis lowers future gains when I withdraw the money for living expenses.

I use specific identification for capital gains so I can cherry pick the purchase lots that are being sold and limt them to just those that i have held for at least a year.

 

[tuixiu]

Is it possible to also have a strategy of pulling money out of tax-deferred up to the 15% from age 60-70?

Like if threaddstarter needs 50k annually, with std deduction + exemptions of about 18k for a couple he might have a lot of room under the 72k cliff for 25%. So if he started getting closer to retirement and realized his tax deferred was getting fat enough that it might cost him at age 70, doesn't he have a decade available to play shift funds from IRA to taxable accounts at 15%?

 

[Animorph]

Is it possible to also have a strategy of pulling money out of tax-deferred up to the 15% from age 60-70?

Like if threaddstarter needs 50k annually, with std deduction + exemptions of about 18k for a couple he might have a lot of room under the 72k cliff for 25%. So if he started getting closer to retirement and realized his tax deferred was getting fat enough that it might cost him at age 70, doesn't he have a decade available to play shift funds from IRA to taxable accounts at 15%?

Don't know about OP's case, but that is certainly a reasonable strategy, both before and after age 70. If you end up pulling out more than you need, you make the excess a Roth conversion.