We are retired living off of IRA withdrawals. I had a startled wake up about 4am, thinking, I'm doing this wrong!
I have my taxable account set to 'Reinvest Dividends' I'm pretty sure that leaves me paying tax on the dividends and that I don't receive for spending and then withdrawing more from IRAs to cover expenses, making my tax bill higher than it would be if I received the dividends and withdrew less from my IRAs. Add to this, a complicating issue, we are doing Roth Conversions.
Would I be better off receiving my dividends as added spendable income or at least money to pay the tax on our Roth Conversions?
I have my taxable account set to 'Reinvest Dividends' I'm pretty sure that leaves me paying tax on the dividends and that I don't receive for spending and then withdrawing more from IRAs to cover expenses, making my tax bill higher than it would be if I received the dividends and withdrew less from my IRAs. Add to this, a complicating issue, we are doing Roth Conversions.
Would I be better off receiving my dividends as added spendable income or at least money to pay the tax on our Roth Conversions?