pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
..... Average RMDs over the first 10 years is 4%.
And 4% times $770k is $31k, added to SS of I'm guessing $30k.
$61k minus $24k (standard deduction) = $37k of taxable income, but, I don't think they will even be taxed on their SS because, adjusted gross income + nontaxable interest + half of your Social Security benefits will be below $32k. That $32k has it's own yearly inflation increase, so it will be higher when the RMDs start. ....
You got a couple things wrong here.
First, the hurdles do not increase as a result of inflation as you suggest. That is a well known problem that cause more of SS to be taxedas time goes on since SS increases but the hurdles are fixed.
Second, the number that you cite would result in SS being taxed. $31k RMD + 1/2 of $30k in SS = $46k which exceeds the $44k hurdle for a couple so 85% of SS would be taxable.
... According to the IRS, the quick way to see if you will pay taxes on your Social Social Security income is to take one half of your Social Security benefits and add that amount to all your other income, including tax-exempt interest. This number is known as your combined income (combined income = adjusted gross income + nontaxable interest + half of your Social Security benefits). ...
...For married couples filing jointly, you will pay taxes on up to 50% of your Social Security income if you have a combined income of $32,000 to $44,000. If you have a combined income of more than $44,000, you can expect to pay taxes on up to 85% of your Social Security benefits. ...
.... My gut feeling with only the details the OP has given is, it may cost them more if they do Roth Conversions then if they don't. ....
Jethro Gibbs you are not... your gut feeling is wrong... if it were right why would the OP's tax preparer be talking with the OP about Roth conversions?
.... have you thought about ROTH conversions...
... Yes when we had our taxes done the lady ask us about that. We figured we would look at that later this year since this will be our 1st full year of not working,so we will know where we stand.
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