Required Withdrawals Question

[NW-Bound]

10 years for your heir to withdraw results in a higher amount each year than your RMD, unless you live past 94.

And if your heirs are working, that amount when added to their earned income may push them in a higher tax rate than you pay.

In short, pedal to the metal on Roth conversion is the way to go.

 

[mickeyd]

The RMD is a requirement to pay tax, not a requirement to spend.

 

[NW-Bound]

The RMD is a requirement to pay tax, not a requirement to spend.

That's right.

And as tax is unavoidable, paying early may result in paying less than paying later.

 

[MarieIG]

And most likely IRMAA, too!

Don't forget the NIIT.

 

[Gumby]

And, as a general reminder, if you are looking to use a qualified charitable distribution to fulfill part of your required minimum distribution in any year, you need to do the QCD first, then the balance of the RMD.


https://www.lordabbett.com/en-us/fi...t=A QCD can only be done for the current year.

 

[PERSonalTime]

When I start RMD in a few years, it will go into my Roth account. There, it will continue to grow tax-free.

How is that possible without earned income?

 

[audreyh1]

How is that possible without earned income?

It’s not. See post#35.

Otherwise you can do Roth conversions regardless of earned income. But once you have RMDs only the amount above the RMD can be concerted to Roth each year.

 

[Sunset]

So youare required to take out XX dollars and if you then put it into standard savings account you get to pay tax on the interest again. Happy days are here again!

Nope, take $XX out for RMD, pay tax. Buy BRK.B in brokerage account never sell and never pay tax.
Heirs get the BRK.B tax free as long as it's less than $12 Million, and depending upon the State you live in.
Heirs spend the money and taxes were never paid