TonyClifton
Dryer sheet wannabe
Because my natural tendency is to save instead of spend I have accumulated quite a lot in my 401k(s). I've suddenly sat bolt upright in my chair realizing I may have saved too much, at least as far as tax avoidance is concerned which is a major reason for 401ks and their tax advantages.
Not wanting the heirs to deal with the tax complications of inheriting untaxed money, I'm interested in systematically withdrawing up to the limit of whatever tax bracket is appropriate, in this case currently 24%. The returns on that money reinvested though keeps pushing the income up, so again, higher tax brackets loom. I know, most folks should have this problem (heh), no argument there.
I'm thinking one strategy is to invest withdrawn money in individual stocks of no or low dividend payout, so annual proceeds are low and then it's just LT capital gains that are due when they're sold.
Does anyone know of strategies similar to what I've described to achieve the goal of 401k withdrawals that avoid the high taxes we were trying to avoid in the first place?
Not wanting the heirs to deal with the tax complications of inheriting untaxed money, I'm interested in systematically withdrawing up to the limit of whatever tax bracket is appropriate, in this case currently 24%. The returns on that money reinvested though keeps pushing the income up, so again, higher tax brackets loom. I know, most folks should have this problem (heh), no argument there.
I'm thinking one strategy is to invest withdrawn money in individual stocks of no or low dividend payout, so annual proceeds are low and then it's just LT capital gains that are due when they're sold.
Does anyone know of strategies similar to what I've described to achieve the goal of 401k withdrawals that avoid the high taxes we were trying to avoid in the first place?