papadad111
Thinks s/he gets paid by the post
- Joined
- Oct 4, 2007
- Messages
- 1,135
Great discussion. Should be a sticky. The accumulation phase toward ER is what everyone most often discusses, but the draw-down phase is equally, if not more important as a mistake here can be disastrous with the inability to earn more to correct the error.
Had not thought about the IRA to ROTH conversion strategy at age 59.5 so as to avoid a potential MWD tax hit at age 70.5.... thats excellent input for those who have sizeable pre-tax retirement savings and plan/hope to live a long time (dont we all...)
The deferral of SS and then suddenly a "windfall" of SS plus MWD can put someone in a tax-ugly position.
In my 40's I am not thinking along those lines, and of course, rules can and will likely change, but it's important to get this draw-down strategy laid out on a piece of paper or spreadsheet and then run some scenario's....
Perhaps an opportunity for a FIRECALC like tool that simulates after-tax cash impacts of various draw downs .....
Had not thought about the IRA to ROTH conversion strategy at age 59.5 so as to avoid a potential MWD tax hit at age 70.5.... thats excellent input for those who have sizeable pre-tax retirement savings and plan/hope to live a long time (dont we all...)
The deferral of SS and then suddenly a "windfall" of SS plus MWD can put someone in a tax-ugly position.
In my 40's I am not thinking along those lines, and of course, rules can and will likely change, but it's important to get this draw-down strategy laid out on a piece of paper or spreadsheet and then run some scenario's....
Perhaps an opportunity for a FIRECALC like tool that simulates after-tax cash impacts of various draw downs .....