JackJester
Recycles dryer sheets
Hello. I just read about the passing of this act and don’t know much about it. The news says: “It would also increase the starting age for required minimum distributions to 73 in 2022, 74 in 2029 and 75 by 2032, up from the current 72.”
I will be 55 in July this year 2022 and I am retiring in late July as well. I haven’t figured out when I will begin converting my 401K to Roth (to reduce RMD taxes)..I know there are calculator tools mentioned on this forum that I plan to explore, but I wonder if this new act should impact my decision for Roth conversions. So, in the year 2042 I’ll turn 75, thus I will not have to take RMDs until age 75. While this seems like not a big difference from current RMDs at age 70.5, I wonder does this change anything? Not sure if it matters, but we're 70/30 AA and plan to stay that way forever; most of our investments are pre-tax 401K [$2.5 mil], and we will rely on them to cover 90% of expenses beginning 2025 for the duration. My life expectancy per the actuarial is 81, but given family history I’m thinking 85 (similar for DW). Blow the dough to $0 is the plan.
I will be 55 in July this year 2022 and I am retiring in late July as well. I haven’t figured out when I will begin converting my 401K to Roth (to reduce RMD taxes)..I know there are calculator tools mentioned on this forum that I plan to explore, but I wonder if this new act should impact my decision for Roth conversions. So, in the year 2042 I’ll turn 75, thus I will not have to take RMDs until age 75. While this seems like not a big difference from current RMDs at age 70.5, I wonder does this change anything? Not sure if it matters, but we're 70/30 AA and plan to stay that way forever; most of our investments are pre-tax 401K [$2.5 mil], and we will rely on them to cover 90% of expenses beginning 2025 for the duration. My life expectancy per the actuarial is 81, but given family history I’m thinking 85 (similar for DW). Blow the dough to $0 is the plan.