Reply to Withdrawing taxable investments question

Forum Index » Money and Finances

Reply to "Withdrawing taxable investments question "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I agree that bogleheads would be better.

From what you say it seems like you have the following assets

1) a very healthy pension
2) home equity
3) 2 traditional IRA's and or other type of tax deferred accounts (401k/TSP/403/457 etc.) that require RMD's  
4) the third account is a normal taxable investment account or maybe a roth IRA/457/401k/403

you should seek professional financial planning tax planning advice, but I think what you are trying to get at is that you have a very good problem: your pension provides a baseline of ordinary taxable income such that RMD's from your tax deferred accounts once you hit 72 may be taxed at a high rate.

as alluded to in the prior post this brings up the issue of whether or not you should use the years between now and when the RMD's come to convert some of your tax deferred accounts to a roth accounts. This is pretty much an estate planning question and will be influenced by what you wish to optimize and what tax/legislational risk you are willing to take. your charitable desires are also an important consideration in all this.

with more detail on the exact numbers in terms of pension amount, type of account, expected annual tax deductions, where you live, what you desire to leave behind, etc.  i'd be happy to provide some more thought/analysis.

to make things more complex, the considerations recently just changed significantly with the passage of the SECURE Act

Here are some relevant links to ge started.

https://www.marketwatch.com/story/think-twice-before-converting-to-a-roth-ira-to-avoid-rmds-2015-01-12
https://www.forbes.com/sites/nextavenue/2020/12/31/6-ways-the-secure-act-may-impact-your-retirement/
https://www.fidelity.com/viewpoints/retirement/roth-ira-conversion-after-50
https://www.kiplinger.com/article/taxes/T055-C001-S002-retirees-reduce-your-rmds-with-a-roth-conversion.html
https://investor.vanguard.com/ira/roth-conversion
https://ballastplan.com/pre-rmd-social-security-roth-conversions/[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics