This is directed to those who are already taking their Required distribution and have no other earned income other than social secuirty and some interest/dividends and are in the 10-15% tax bracket.
What do you find is the most tax advantaged way to invest the taxable account? As you know, if you are using tax free interest investments, you must add that back into income to determine the percent of Social Security that is taxable. In 2010 capital gains and qualified dividends are not taxable in the 15% tax bracket, but are also included in income to determine how much SS is taxable. After 2010 it is unknown if that tax advantage will continue. I have just gone through an estimate of my 2010 taxes as I decided to use 2010 to take some long term CG and this had me thinking about how to manage our taxable account and if I can improve it.
I'd be interested in how others are doing this.
What do you find is the most tax advantaged way to invest the taxable account? As you know, if you are using tax free interest investments, you must add that back into income to determine the percent of Social Security that is taxable. In 2010 capital gains and qualified dividends are not taxable in the 15% tax bracket, but are also included in income to determine how much SS is taxable. After 2010 it is unknown if that tax advantage will continue. I have just gone through an estimate of my 2010 taxes as I decided to use 2010 to take some long term CG and this had me thinking about how to manage our taxable account and if I can improve it.
I'd be interested in how others are doing this.