Thwarting the weasel?
Perhaps this is the right place to ask this question. I do not believe that I have seen this discussed before. Does it make sense or not?
Scott Burns has pointed out that withdrawals from an IRA are taxed as income and that there is a point where SS payments plus income goes through a 50% marginal tax rate, which may be avoidable. Unless I continue to work (sad but possible), this will not be a problem for me, but many will be in this situation. I also have in mind Scott Adams’ Weasel Effect (?) that says when a certain amount of money accumulates in one place, a weasel magically appears and takes it away.
Consider the following to prevent an overlap of SS and income from IRAs:
a) delaying SS payments until 72,
b) pulling IRA assets out between the age of 60 (if memory serves, when unrestricted access begins) and 72, to be re-invested to take advantage of the lower tax rate on capital gains.
I suppose it depends on how big the normal withdrawals would be and how long one expects to live. We need Gummy’s crystal ball. Still, one needs a long-term strategy.
Has anyone looked at this?
Thanks.
Gypsy