Retiredmajor
Recycles dryer sheets
Hi all, I have a question and would like your thoughts!
This is our first year retired and thus far things are working great! We are living off savings and minimal "hobby job" income. We will end up solidly in the 12% tax bracket.
Next year may likely be different. So, my question is:
Does it make sense to withdraw funds from my IRA this year while in the 12% tax bracket for use next year when my tax rate might be higher? I'd probably put the money in a general savings account. In addition, If I took money this year to use next year, it may keep me in the 12% tax bracket next year, as well.
What do you think?
Thanks in advance for any thoughts!
Major
This is our first year retired and thus far things are working great! We are living off savings and minimal "hobby job" income. We will end up solidly in the 12% tax bracket.
Next year may likely be different. So, my question is:
Does it make sense to withdraw funds from my IRA this year while in the 12% tax bracket for use next year when my tax rate might be higher? I'd probably put the money in a general savings account. In addition, If I took money this year to use next year, it may keep me in the 12% tax bracket next year, as well.
What do you think?
Thanks in advance for any thoughts!
Major