Those of you retireing early(55+) with a larger traditional IRA(>$1 mil) and with plans to minimize taxes for your heirs may want to consider taking a more aggressive(>8%) withdrawal program?! This takes for granted that you plan to deplete your IRA before your demise(ideally the day before) to avoid a "possible higher tax" rate for your heirs. Estate taxes are onerous so we all need to have an estate plane to avoid these taxes. Another facet of this >8% withdrawal strategy is to plan to save a portion of the IRA withdrawals to either gift($10000 tax free) to each of your children, grandchildren... or use as income in later years to minimize future taxes in higher income years. Note that those of you under 65 can withdraw money from a traditional IRA without a penalty by annuitizing withdrawals(IRS Code 72(t)). Anyone out there know of any alogrithms to plug numbers into to determine these types of withdrawal scenarios.
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