Reply to Taking Social Security at 62

Forum Index » Money and Finances

Reply to "Taking Social Security at 62"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Both of us plan to take it at 62 rather than touching TSP/401k.  Between 2 pensions and 2 early SS, I think we will have enough.[/quote]

Don't forget about RMD around age 72 and seeing this is DCUM and everyone has 2 million in their 401k at age 40, these can get quite high[/quote]

PP you were responding to. Yes, RMD is one of the reasons why we want to start taking sooner. Higher amount of SS plus when RMD kicks in will definitely cause tax headaches. As soon as we retire, we will convert to Roth aggressively, until RMD kicks in at 72 (or 75).  [/quote]

Depending on tax rates, it could pay to not take SS until later if you can forego the cash flow.  You would have a lower income, making it possible to do the Roth conversions with less of a tax hit.

As I recall, the SS amount taxed is only 85% of the amount received, and in some states is not taxed at all, so that needs to be taken account of in your calculation.

Also, not to be morbid but realistic, if you or your spouse are in poor health, you need to think about those RMDs coming in when you might be subject to single tax rates. If you are used to married filing jointly rates, they are amazingly high.  [/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