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URL:  http://boards.fool.com/i-am-looking-at-retiring-in-a-few-years-and-my-30767934.aspx

Subject:  Re: 401k withdrawal taxes at retiremtent Date:  7/9/2013  1:36 PM
Author:  irasmilo Number:  118820 of 121252

I am looking at retiring in a few years and my plan is to work until I am 65/66 but wait until I am 70 before applying for Social Security (to get the maximum amount). My wife will be retired and will draw a pension (no SS yet) of $24000/yr. I was thinking of withdrawing the maximum amount from my 401k (up to $46700+/-) every year, use what we need to live on and invest the rest, so that I will only pay in the 15% tax bracket and not the $25% tax bracket on an income over $70700. At age 70, both of us will be eligible for SS and with pension we will get $72000/yr to live on, which should be no problem for us.
Does this make sense or am I looking at it all wrong?


There is no maximum withdrawal amount, only a maximum contribution amount. You may want to withdraw as much as it takes to get you to the top of the 15% bracket. Remember, that you need to look at taxable income, not AGI.

Ira
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