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Subject:  Re: Roth investing/withdrawing at 60 Date:  3/16/2012  10:32 AM
Author:  Watty56 Number:  70377 of 88758

....IRA withdrawals increase the tax on SS

Let's get real here.
For MFJ, SS is not taxed if your taxable income is below $32,000
Between $32K & $44K it's taxed 50%.
Above $44K it's taxed 85%.

Unless you retire dirt-poor, your SS is going to be taxed at 85%.

Do you *really* want to have such a low income? And, heck, if you have to get a job as Walmart greeter, you're going to be pushed over the threshold.


At $32K of taxable income for a couple that would be;

$32,000 taxable income
14,200 standard deduction for over 65
7,600 personal exemptions
36,200 (ballpark social security)
5,000 spending down assets (like stock sales)
95,000 Total

Combined with a having a paid off house by then, no more retirement savings, no more social security and medicare taxes, no more kids or college expenses and being in a much lower tax bracket, that would likely provide a better lifestyle than someone in their 40's that makes $200,000 and still has to pay for all the other things.

I wanna be "dirt poor" like that when I retire !!!!!! : )

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