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URL:  http://boards.fool.com/my-point-is-that-one-has-to-take-the-29887216.aspx

Subject:  Re: Retirement Funding Date:  3/3/2012  8:16 PM
Author:  MurrayS Number:  70277 of 75338

My point is that one has to take the distributions; everyone with untaxed money in a retirement fund is obliged to withdraw the amount stated in the MRD table. If you don't need it all, good for you, but you'll have to pay tax on it. If you're trying to decide when to retire, knowing your MRD will help you decide when you've got enough in your retirement fund to stop work and live on your saved money.

A second point is that you should try to invest your funds to provide at least enough income to pay the annual MRD.


I tend to disagree on both points. I don't really see how RMDs affects my savings "target" and I have no issues drawing down the principle.

I plan on retiring long before RMDs kick in and I plan on withdrawing from my IRAs annually without RMDs, likely up to the 25% tax bracket.

The goal should not be to pay zero taxes but rather to minimize your taxes throughout retirement.

-murray
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