I can help...........I want to die broke and it's very hard work.
Depending on your IRA balance, you may or may not be wasting ability to pay a lower rate by(using todays brackets) not using the 10% bracket.If you have a lot of IRA assets and your RMD is high enough you "may" be forced to pay in the 15 or 25% brackets when you could have got some out at lower rates. Same with your state tax if you live in a state with state taxes.I have been micromanaging my income up to the top of the 10% bracket for a few years now, and still kick myself that I wasted a couple years by not paying any tax.YMMV
I want to be taxed on 100% of my SS benefits.
+1I am over the RMD age, and have no control over the % that I have to take. I cannot do Roth conversions,because of the limits.
In a sense, it is a good feeling, but I hate to have to pay tax on it
For the past 5 years, my IRA balance has increased in spite of the RMD withdrawals.
+1
It's too late to do anything about it. And my investments keep growing. It's a problem, but I'll manage.
I want to die broke and it's very hard work.
I'm curious. What "limits" prevent you from doing a Roth Conversion? I'm in full evaluation mode on doing the Roth conversion, paying taxes from the 401K/IRA and am unaware of any income limits. Are there others I am unaware of?I am over the RMD age, and have no control over the % that I have to take. I cannot do Roth conversions,because of the limits.
In a sense, it is a good feeling, but I hate to have to pay tax on it
For the past 5 years, my IRA balance has increased in spite of the RMD withdrawals.
............I want to die broke and it's very hard work.
I can help.
It's not so hard if you have help.
Let me volunteer my services...
I'm curious. What "limits" prevent you from doing a Roth Conversion? I'm in full evaluation mode on doing the Roth conversion, paying taxes from the 401K/IRA and am unaware of any income limits. Are there others I am unaware of?
Thanks for posting. Never knew the credit back to the trust fund was taking place.You are substantially correct. The taxes raised by the first 50% are credited to the SS Trust Fund. So, from a SS funding perspective, this is exactly like a benefit cut.
However, the taxes raised by the additional 35% go to the Medicare Trust Fund.
Nice history here: https://www.ssa.gov/history/taxationofbenefits.html
+1 To my knowledge you can do Roth conversions after 70 1/2 if you want to... you just have to do your RMD as a withdrawal first and then you can do as much or as little as you want.
It was not clear to me what the constraint that he was referring to was either.