Hokie
Dryer sheet wannabe
Im trying to map out and understand a few things. Goal is Retire by age 50. I will use taxable investment account with Vanguard for withdrawal from age 50 through age in which I can access qualified retirement accounts. What I am trying to understand is how my withdrawals during this 10+ year period will be taxed. So hypothetically if the account is $1Million at age 50.....$500k are my after tax contribution $500K are gains.....At this point I retire with $0 annual income. I withdraw $40K/ year. What is my tax liability on the $40k? I have read so much on this that Im not sure because some of the info contrdicts other info. Is the withdrawal a mix of my contributions(already taxed) and the gains(not yet taxed)? If so, would that mean$20k of my $40k is subject to capital gain taxes? Then I read that married couples filing jointly with less than $70kish combined income are not subject to capital gain taxes Did I misread or misunderstand that? If that is the case, our combined income is essentially $0 at that point so does that mean $0 tax on the withdrawal? I dont think so but trying to figure it all out. Any help in clearing this up for me would be appreciated. Thanks!