What do posters consider a large RMD. Is it based on tax %s? If we have $2M in our tIRA and $60K SS, that puts us in the lower end of 22% (edit example RMD $91K), but according to
https://www.irscalculators.com/tax-calculator
we're paying $4274 in IL taxes which is not true. We would pay "0" in IL taxes.
That had me curious to look, as I hadn't paid much attention to the tax brackets in awhile. I'm single, so it looks like the 2024 brackets for me are:
10%: $0 to 11,600
12%: $11,601 to 47,150
22%: $47,151 to $100,525
24%: $100,526 to $191,950
32%: $191,951 to $243,725
35%: $243,726 to $609,350
37%: $609,351+
For me, the biggest jump would be going from the 12% to the 22% bracket, to where I can see the rationale for perhaps trying to keep my income below that.
But, if I'm already well into the 22% bracket, I don't think having some income push into the 24% bracket is going to bother me. Now going from 24% to 32%, that's another pretty big jump. I don't think I'll ever get to that threshold, though, unless I took an awfully big RMD one year for whatever reason. Now in raw dollars, I'll probably reach that point. But by the time I do, with inflation adjustments, the brackets will (hopefully) move higher, as well.
Actually, if I waited until the age of 73 (or did they move it to 75 yet?), I could see the RMD's getting pretty big, if things go well. A lot can happen in 19-21 years.