UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: MurrayS Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: Re: Roth vs Traditional Date: 1/21/2013 9:01 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Well said, Murray. But keep in mind the need to make those payments last for your lifetime probably keeps your balance large. But mandatory distributions in a traditional IRA at age 70-1/2 can take a big hit--especially if Social Security payments are taxable and consume your lowest tax brackets.

It is probably a good idea to use some of that surplus 15% bracket you describe to do partial Roth conversions and minimize mandatory distributions when you can.


I agree, but a couple thoughts...

I expect we'll have close to $1M in distributions before RMDs kick in.

I've reviewed the RMD tables and I'll consider myself fortunate if I'm forced into our current 33% bracket since that will mean we're pretty much set for the rest of our lives.

-murray
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement