Withdrawl confusion

[nun]

Can anyone advise me how to take money from my various retirement accounts to comply with the IRS tax regs. I'm 60 years old and have $50k in a ROTH, $200k in an IRA, $50k in an IRA that has was set up with $20k of after tax contributions from a 401k rollover, and $200k in a MA state retirement fund for which the distributions are free of MA tax, but not Federal. I also get $5k from a defined benefit pension.

I took advantage of just about every retirement vehicle I could and now I'm left with a confusing array of accounts.

[retire@40]

Right now there are no "requirements" to take any distributions from any of your accounts.

But, you will need some short-term and long-term tax planning that may require the services of a CPA.

Since we don't know your entire financial and tax profile, it's hard to say without risk of misguiding you here as to exactly what to do besides advising you to get to an answer that will minimize you long-tem tax payouts.

[nun]

Quote:

Originally Posted by retire@40 Right now there are no "requirements" to take any distributions from any of your accounts. But, you will need some short-term and long-term tax planning that may require the services of a CPA. Since we don't know your entire financial and tax profile, it's hard to say without risk of misguiding you here as to exactly what to do besides advising you to get to an answer that will minimize you long-tem tax payouts.

Basically I want to take systematic annual payments of 6% of the total of the accounts. I just want to know if all these accounts are treated as one by the IRS when I take money out. Can I take the 6% from my ROTH first and pay no tax or do I have to take after tax money out in the ratio of Tax Free/taxed money.

[2B]

You can take money from any account but if you take all from the Roth you won't be taking advantage of the low tax rates if you don't have other sources of income. You always want to take out enough from your taxable IRA to bring your income up to the lowest tax rate.

[nun]

Quote:

Originally Posted by Soon2B You can take money from any account but if you take all from the Roth you won't be taking advantage of the low tax rates if you don't have other sources of income. You always want to take out enough from your taxable IRA to bring your income up to the lowest tax rate.

So ROTH IRAs are not lumped in with taxable IRAs for the IRS regs on payments from multiple IRAs. Can you tell me if I take money from my
regular IRAs what fraction would have to be the after tax and what the before tax contributions. I have no other income.

ie
$50K in ROTH
$50k in IRA, $20k are after tax conributions, $30k earnings
$200k in IRA, funded with tax deferred contributions
$200k in MA state retirement funds, withdrawls are free of MA state tax, but are taxed federally.

[2B]

You want a whole financial plan don't you?

You can take out money in any combination you want. You haven't said how much you would like to take out annually. If this is all you have to live on, you can only take out around $20,000 per year if you don't want to run out of money. At that withdrawl rate, it doesn't matter which account you take money from.

[nun]

Quote:

Originally Posted by Soon2B You want a whole financial plan don't you? You can take out money in any combination you want. You haven't said how much you would like to take out annually. If this is all you have to live on, you can only take out around $20,000 per year if you don't want to run out of money. At that withdrawl rate, it doesn't matter which account you take money from.

I want to take out 6% annually. Are you aware of the IRS regs about proportional withdrawl of after tax and before tax contributions in IRAs. I want to know which accounts I include in calculating my after tax contribution basis.

[Nords]

Quote:

Originally Posted by nun I want to take out 6% annually. Are you aware of the IRS regs about proportional withdrawl of after tax and before tax contributions in IRAs. I want to know which accounts I include in calculating my after tax contribution basis.

Your question might be better answered by the CPAs who regularly post on IRA issues at Ed Slott's IRA discussion board. At least two of the regulars, Bruce Steiner & Mary Kay Foss, are published authors who delight in fully (and correctly) answering this type of question in the detail you're looking for. Denise Appleby also does a good job.

[nun]

Thanks, that website look like just the ticket. FYI I think I've worked
out the issues, thanks to the posters.