NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
For the few years prior to 2015, I paid just some bitty Federal income tax due to living off my after-tax cache. However, the after-tax dividend was not enough for the expenses, and I have been spending down capital too. It was not really a choice, as I could not get to the tax-deferred accounts before 59-1/2 without penalty, and I did not want the hassle of 72(t) distribution.
I could keep going like this for a few more years, but eventually all that before-tax savings will be taxed at some point. And I want to keep some money in the after-tax accounts for some warm fuzzy feeling, and do not want to deplete it too much. So, I started to draw from the IRA, and got hit by taxes again.
You pay now, or you pay later. I want to spread out the pain. If one is lucky to have a lot more after-tax money, he is golden. I am not in that fortunate situation.
I could keep going like this for a few more years, but eventually all that before-tax savings will be taxed at some point. And I want to keep some money in the after-tax accounts for some warm fuzzy feeling, and do not want to deplete it too much. So, I started to draw from the IRA, and got hit by taxes again.
You pay now, or you pay later. I want to spread out the pain. If one is lucky to have a lot more after-tax money, he is golden. I am not in that fortunate situation.
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