I have, up this point, ignored consideration of RMDs and the associated tax consequences. Well, time marches on and I will be subject to RMDs in calendar year 2027. Wife will be subject to RMDs also in calendar year 2027. I am sitting on about $1,580,000 in IRAs and 401ks, Wife has about $407,000 in IRAs, in current $.
I would like to estimate how much we would be required to draw down starting in 2027. I would also like to know how to estimate the required RMDs in subsequent years. Somewhere along the line I will need to figure out how much I will need to have deducted for federal taxes. We live in Florida so there is not state tax considerations.
In my case I have a 401k at Vanguard and another, much smaller, at Principal. There are also two IRAs at Vanguard. Should I rollover 401k at Principal into an IRA at Vanguard to get all the accounts under one investment firm? How else would you know how large the RMD will be then how much to take in taxes? Does each investment firm advise how much needs to be taken as an RMD based only upon the amount they have on account?
Maybe someone can suggest a website that a good basic primer for RMDs that can answer most of these questions.
I would like to estimate how much we would be required to draw down starting in 2027. I would also like to know how to estimate the required RMDs in subsequent years. Somewhere along the line I will need to figure out how much I will need to have deducted for federal taxes. We live in Florida so there is not state tax considerations.
In my case I have a 401k at Vanguard and another, much smaller, at Principal. There are also two IRAs at Vanguard. Should I rollover 401k at Principal into an IRA at Vanguard to get all the accounts under one investment firm? How else would you know how large the RMD will be then how much to take in taxes? Does each investment firm advise how much needs to be taken as an RMD based only upon the amount they have on account?
Maybe someone can suggest a website that a good basic primer for RMDs that can answer most of these questions.