FD is correct.
Is the pain issue with RMDs that some folks have so much in tax-sheltered assets that the RMD each year after 70.5 puts them in the marginal 33% or higher Federal bracket?
Whereas had they withdrawn modest chunks each year back in their 60's they would have been able to stay in the marginal 25% or 28% bracket.
Because either way, the Feds are gunna get a piece if we live long enough...
Most people don't want to pay more taxes, even if we are in relatively lower tax bracket times. People should have been taking some every year and reinvesting it if not needed to pay the lower tax now versus the higher taxes later, which is inevitable.........
We are, but that's only because of our specific situation. As in all discussions of this type, it all depends - on your specific situation.Would taking down all of my IRA's in my 60's be smart (i.e. wait until 70 for SS) and then live off SS and Roth money?
Exactly the best things to leave to survivors are in taxable accounts since there is then no income tax in respect of decedent (assuming not estate tax eligible). Of course even if there were it is in essence the charity's problem.We chose not to convert to Roth's for two reasons. First being that if we die early (or late), the majority of our tax-deferred holdings will pass on to our named charities, with no tax due (under current tax laws).
U R correct. The challange is with "excess RMD's" - that is the requirement to withdraw beyond your retirement budget.RMDs are not such a bad problem to have.
U R correct. The challange is with "excess RMD's" - that is the requirement to withdraw beyond your retirement budget.
RMDs are not such a bad problem to have.
Just perhaps, it's time to spend a little more of that nestegg. If the taxes are higher then so be it.
In our case, that's not an option we will persue. We are also providing additional funds to our (disabled) son's SNT trust from our residuial estate after we're both gone.Maybe you should consider raising the retirement budget bar while you are still able to enjoy it.