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Personal Finance and Investing

progree

(11,541 posts)

5. You don't have any regular taxable accounts to withdraw from?

Reply to question everything (Reply #4)

Fri Dec 20, 2019, 01:55 PM

Dec 2019

I wish my entire traditional IRA was converted to Roth, so that I had no RMD requirements (and thus not having to pay the full ordinary tax rate on every dime of the RMDs). And I would be withdrawing money for living expenses from taxable accounts. Thus not paying any taxes on the amount withdrawn. Oh, if I had to sell something with a capital gain, I would have capital gains taxes, but the CG rate is 0% for people in the ordinary 12% tax bracket.

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About those RMDs (for the 70+ here) [View all] question everything Dec 2019 OP

Ah heck- James48 Dec 2019 #1

The Secure Act which was passed by both houses of Congress raises the RMD age requirement still_one Dec 2019 #2

Would have hurt us. At 70 and 1/2 we retired and needed the RMD question everything Dec 2019 #4

You don't have any regular taxable accounts to withdraw from? progree Dec 2019 #5

Yes, do. Most of it are securities that selling would generate capital gain question everything Dec 2019 #10

How would you pay capital gains taxes if you are in the 12% ordinary tax bracket? progree Dec 2019 #11

Oh. But one first has to take all the RMD and then can take extra to convert to Roth question everything Dec 2019 #12

Good luck 😂. I have to make my Roth conversion decision (yes/no/how much) in a few days progree Dec 2019 #13

To add and to thank you question everything Dec 2019 #14

I'm glad I helped in some way 😁 progree Dec 2019 #15

Qualified Dividends and Capital Gain Tax Worksheet question everything Dec 2019 #16

But don't you use TurboTax and don't they get it right (as far as qualified dividends)? progree Dec 2019 #17

Don't like surprises. Certainly not where money is invovled question everything Dec 2019 #18

Don't like surprises either, but whether I get a $2,000 refund in April or have to pay a $5,000 progree Dec 2019 #19

The ideal situation is one invests in such a way that the investments generate interest and dividend still_one Dec 2019 #6

Still, if you need to withdraw money for expenses, you want to withdraw it from taxable accounts progree Dec 2019 #3

Also for inherited IRAs there are several ways to take those RMDs, including annuitizing them still_one Dec 2019 #7

Yes, another option that looks real good to me is just donating the RMDs directly to charity -- progree Dec 2019 #8

Exactly, especially since for a lot of folks they can't itemize deductions, and this is a perfect still_one Dec 2019 #9