donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Another thread made me start thinking about the timing of RMD withdrawal. I currently have my TSP withdrawals come as monthly payments since we use them to fund current expenses. But when DW's mega RMDs kick in we will be in a different boat. We will be dumping them into taxable investment accounts, not spending them.
If we take them as a lump sum in December and have tax withheld it seems like we would be up a bit on the growth in the funds that would otherwise be languishing at IRS if we withdrew (and paid the taxes) earlier. But those additional earning will eventually be taxed at income rates. Has anyone run numbers on this to see if it is better to take them at the end of the year?
If we take them as a lump sum in December and have tax withheld it seems like we would be up a bit on the growth in the funds that would otherwise be languishing at IRS if we withdrew (and paid the taxes) earlier. But those additional earning will eventually be taxed at income rates. Has anyone run numbers on this to see if it is better to take them at the end of the year?