|
06-07-2008, 08:15 AM
|
#1
|
Confused about dryer sheets
Join Date: May 2008
Posts: 2
|
IRA Distributions?
Hello retirement and where's my money?...trying to decide what is best way to take interest & cap gains only, from IRA distributions. Just quarterly, or maybe monthly,with all distributions from other IRA's going thru, say, a bond fund. Worried about tax problems among other things....Thoughts?
Thanks
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-07-2008, 08:46 AM
|
#2
|
Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
|
I am not sure that I understand your question so I might be off point here. First of all, unless it is a Roth IRA all your distributions are taxable as ordinary income. It doesn't matter if the money came from capital gains or interest. But the money isn't taxed until it is removed from the IRA. If you want part of your IRA in a bond fund so it is more liquid, you could have a bond fund as part of your IRAs, putting the interest and capital gains in the fund but leaving the fund as part of the IRA. Only remove money from the IRA as you need it, unless you are you at the point of having to take required minimum distributions.
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
|
|
|
06-07-2008, 11:00 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,668
|
Quote:
best way to take interest & cap gains only, from IRA distributions.
|
The way that I view this is that by taking only interest and CGs you are probably not withdrawing the proper amount for your situation. My plan is to eventually withdraw a percentage of my total IRA (say, 4% annually) as that will be close to what my needs will be. The dividends and CGs will just continue to be reinvested. I will have my withdrawal money distributed quarterly to my taxable Prime MMF so that I can access it when I need to. If you withdraw only the divs and CGs you could use the same process.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
|
|
|
06-07-2008, 11:29 AM
|
#4
|
Full time employment: Posting here.
Join Date: Feb 2006
Posts: 987
|
Quote:
Originally Posted by mickeyd
The way that I view this is that by taking only interest and CGs you are probably not withdrawing the proper amount for your situation. My plan is to eventually withdraw a percentage of my total IRA (say, 4% annually) as that will be close to what my needs will be. The dividends and CGs will just continue to be reinvested. I will have my withdrawal money distributed quarterly to my taxable Prime MMF so that I can access it when I need to. If you withdraw only the divs and CGs you could use the same process.
|
That's exactly what I do now. At age 60, my income comes from three sources; SPIA, small VA disability, and IRA withdrawls (albit only on "up years"). I keep 3-4 years in MM funds to get over the "rough spots" as we are in, now . I don't look specifically for a %, but rather than keep the 3-4 year MM level as it is. In down years, I do no withdrawls. In up years (for instance, last year's 7% for me, return) I "restock" that short-term MM position.
Kind of like "buckets" without all the "thinking" ...
I'm not planning on SS till age 70 (but that's another discussion!)
- Ron
|
|
|
06-09-2008, 06:04 PM
|
#5
|
Confused about dryer sheets
Join Date: May 2008
Posts: 2
|
Re IRA Distirbutions
Thanks to all who responded to my question concerning IRA distriutions. Every bit of info is helpful and I realize that everyones situation is different. I am 64, so I have a little time before I have to worry about RMD's, I think. By putting all cpgns & dividns in a MM or a bond fund( I do not have any bond funds or MM set up in my IRA's yet.), I thought that would provide a more level (monthly income) than quarterly, simi, & annually. If as Martha commented, and I believe it to be correct, all distributions would be taxed equally then there would be no problems. My eventual plan is to draw 3 to 4 % when the RMD timeline hits. I do appreciate all the replies.........Thanks
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|