I am pretty much a non-money person, meaning I really don't care about it.
I'm 70 years old; completely debt-free for many years; live on a state pension, my SS and my wife's SS, which adds up to about $90K annually; and have plenty of discretionary income.
I have about $380K in ultra-conservative investments - a Nationwide Fixed Account 457 plan ($170K), Series I savings bonds ($80K), and assorted bank CDs and savings accounts ($130K), some of which are traditional IRAs.
The total amount that will eventually subject to the MRD starting in 2022 is about $220K.
Just because I don't want to deal with the hassle or have my Russian wife deal with the hassle if I die, I'm thinking about taking a lump-sum distribution of the full $220K, paying the $40K or so in taxes, and being done with it. If I were to die, my wife would simply go home to her family, so I'd like her to be able to cash out quickly.
The other alternative would be to take the $220K over 3-4 years, but the tax consequences don't seem wildly different.
Any thoughts or bright ideas on this plan (or non-plan, as the case may be)?
I'm 70 years old; completely debt-free for many years; live on a state pension, my SS and my wife's SS, which adds up to about $90K annually; and have plenty of discretionary income.
I have about $380K in ultra-conservative investments - a Nationwide Fixed Account 457 plan ($170K), Series I savings bonds ($80K), and assorted bank CDs and savings accounts ($130K), some of which are traditional IRAs.
The total amount that will eventually subject to the MRD starting in 2022 is about $220K.
Just because I don't want to deal with the hassle or have my Russian wife deal with the hassle if I die, I'm thinking about taking a lump-sum distribution of the full $220K, paying the $40K or so in taxes, and being done with it. If I were to die, my wife would simply go home to her family, so I'd like her to be able to cash out quickly.
The other alternative would be to take the $220K over 3-4 years, but the tax consequences don't seem wildly different.
Any thoughts or bright ideas on this plan (or non-plan, as the case may be)?