As I am planning on retiring (or at least cutting back..alot) the middle of next year I am trying to get to a lower tax bracket. I have been buying MYGA's over the last year. I have put together a concept on withdrawals:
Building a MYGA ladder so every year I would only have to pay tax on $50,000 - $70,000 interest. This would mean buying individual MYGA's so they don't exceed 250K (State Insurance) per issuer and have them come due on different years. If they happen to come due the same year do a 1035? exchange on one and cash in the other one. Right now I have a bunch of CD's that I have to pay every year on the interest and it puts me in a higher tax bracket. All of these are coming due in the next 4 years. This way I would have 250K to live on with less than 20K in taxes
Any ideas on this strategy?
Building a MYGA ladder so every year I would only have to pay tax on $50,000 - $70,000 interest. This would mean buying individual MYGA's so they don't exceed 250K (State Insurance) per issuer and have them come due on different years. If they happen to come due the same year do a 1035? exchange on one and cash in the other one. Right now I have a bunch of CD's that I have to pay every year on the interest and it puts me in a higher tax bracket. All of these are coming due in the next 4 years. This way I would have 250K to live on with less than 20K in taxes
Any ideas on this strategy?
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