Delayed Social Security & RMD

[Helena]

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.

 

[kaneohe]

Did you think you were Christopher Columbus?
http://www.early-retirement.org/forums/f28/ss-at-70-and-rmds-double-tax-whammy-71971.html

 

[Helena]

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.

 

[Helena]

Did you think you were Christopher Columbus?
http://www.early-retirement.org/forums/f28/ss-at-70-and-rmds-double-tax-whammy-71971.html

Thanks for the link

 

[growing_older]

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.

 

[Helena]

.

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.

 

[MichaelB]

This topic is under discussion here http://www.early-retirement.org/forums/f28/ss-at-70-and-rmds-double-tax-whammy-71971-2.html so to avoid confusion we'll close this thread.