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Subject:  Re: Withdrawal of Funds -- IRA/Roth/General Date:  11/9/2005  11:06 AM
Author:  billjam Number:  48140 of 88800

Since you're over 70, and I'll presume 70 1/2, you have to take a required minimum distribution from your regular IRA. That will be taxed as ordinary income but there's no way around it. If you still need additional cash, you have a couple options. Withdrawals from your Roth are not taxed. If you have capital gains in your taxable investments, they're taxed at a lower rate. If you have some capital losses in your regular investments, they would offset part of the capital gains. If the capital losses exceed the capital gains, you could use up to $3000 to offset ordinary income, and the tax on it.

You'll have to look at various combinations and see which produces the lowest tax. It takes some time but really isn't too complicated. Just start with a few arbitrary combinations and work through the numbers. After 3 or 4 scenarios you should have a pretty good idea what will work best for your situation. Then you can refine the plan as much as you want. Just don't fail to take the required minimum withdrawal from your IRA. That would be really costly.

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