Old thread, same question. In 2013 there was a discussion among many people still on the forum about early IRA withdrawl strategies, especially focused no I-ORP. Since it is recommended not to revive very old threads, I am starting this one.
Planning tools I looked at in the past suggested not to withdraw moneys from IRA prior to RMD. So, I kind of thought I had the answer. Taking another look this week, I-ORP, suggested to withdraw most of my IRA in the next six years. Then take minimum RMDs until the IRA is expired. My IRA represents about 25% of my retirement funds.
I took a look at my next years taxes by following I-ORP recommendations and I go from from paying 12% to 17% of gross income which is caused by a 8% or so IRA withdrawal at age 66. . It coincidentally keeps me just under the next Medicare level which is good news. My spending is such that paying the taxes now is not a financial burden. Also, my spending is much lower than I-ORPs straight line money available analysis.
What our your thoughts now for those who might be rejoining this discussion (and others who may be reading this now) about the best approach? Did any of you follow ORP. Any new calculators you might suggest?
Thanks
Planning tools I looked at in the past suggested not to withdraw moneys from IRA prior to RMD. So, I kind of thought I had the answer. Taking another look this week, I-ORP, suggested to withdraw most of my IRA in the next six years. Then take minimum RMDs until the IRA is expired. My IRA represents about 25% of my retirement funds.
I took a look at my next years taxes by following I-ORP recommendations and I go from from paying 12% to 17% of gross income which is caused by a 8% or so IRA withdrawal at age 66. . It coincidentally keeps me just under the next Medicare level which is good news. My spending is such that paying the taxes now is not a financial burden. Also, my spending is much lower than I-ORPs straight line money available analysis.
What our your thoughts now for those who might be rejoining this discussion (and others who may be reading this now) about the best approach? Did any of you follow ORP. Any new calculators you might suggest?
Thanks