frayne
Thinks s/he gets paid by the post
Just curious as to what your forward looking tax strategy is to ensure you pay the lowest legal allowable tax as possible.
I've always been under the impression to draw from tax deferred accounts first, after tax accounts second. When facing RMDs in a few years would it make more sense to increase the take from the tax deferred accounts now and pay versus possibly paying a higher rate three years down the road. A major variable is growth of funds in the tax deferred account between now and then.
Hope this makes sense and again just curious how people approach this problem. Appreciate any and all comments on this convoluted issue in advance.
Just some ballpark hypothetical numbers
Both spouse and I 66 years of age.
Annual expenses $60K
Take $30K from IRA and receive $33K in SS
Currant IRA balance $750K
After tax accounts $250K
50-50 AA split.
I've always been under the impression to draw from tax deferred accounts first, after tax accounts second. When facing RMDs in a few years would it make more sense to increase the take from the tax deferred accounts now and pay versus possibly paying a higher rate three years down the road. A major variable is growth of funds in the tax deferred account between now and then.
Hope this makes sense and again just curious how people approach this problem. Appreciate any and all comments on this convoluted issue in advance.
Just some ballpark hypothetical numbers
Both spouse and I 66 years of age.
Annual expenses $60K
Take $30K from IRA and receive $33K in SS
Currant IRA balance $750K
After tax accounts $250K
50-50 AA split.