explanade
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 10, 2008
- Messages
- 7,442
Just realized I'm just over the age for withdrawing from IRA and 401k.
After 5 years of ER, I'm spending well under 2% of my assets a year but that represents around double what I was spending 5-6 years ago.
I don't need to withdraw anything. There aren't any toys or other splurges I haven't been able to make, even though I'm spending less than the distributions I get every year.
But by the time I have to make RMDs, I would also have Social Security as well. More importantly, I'd be older and who knows what my health would be or whether I'd be as active.
My assets have grown over 50% in value despite spending most of the distributions, reinvesting a small percentage.
We've had a lot of threads about taking Social Security early, but I don't recall too many discussions about early withdrawals of IRA and 401k.
Anyone doing so? Or it wouldn't be good tax-wise or it would be better to sell after-tax assets first?
I was thinking of withdrawing 5% a year. My ROTH IRA balance isn't that large but withdrawing 5% of my 401k balance would be like 25% of what I've been spending so far.
Again, maybe not great for taxes but the decision would partly be to blow that dough, especially while still able to travel more.
After 5 years of ER, I'm spending well under 2% of my assets a year but that represents around double what I was spending 5-6 years ago.
I don't need to withdraw anything. There aren't any toys or other splurges I haven't been able to make, even though I'm spending less than the distributions I get every year.
But by the time I have to make RMDs, I would also have Social Security as well. More importantly, I'd be older and who knows what my health would be or whether I'd be as active.
My assets have grown over 50% in value despite spending most of the distributions, reinvesting a small percentage.
We've had a lot of threads about taking Social Security early, but I don't recall too many discussions about early withdrawals of IRA and 401k.
Anyone doing so? Or it wouldn't be good tax-wise or it would be better to sell after-tax assets first?
I was thinking of withdrawing 5% a year. My ROTH IRA balance isn't that large but withdrawing 5% of my 401k balance would be like 25% of what I've been spending so far.
Again, maybe not great for taxes but the decision would partly be to blow that dough, especially while still able to travel more.