No. of Recommendations: 3
With substantial sums in 401k or other tax advantaged accounts, be aware of required minimum distributions (RMDs) beginning at age 70-1/2. Plan ahead to avoid the situation where the distributions must be taken when your lower tax brackets are covered by Social Security, pension, and other payments.

The best way is work down the balance in those advantaged accounts whenever you have a low tax year. Roth Conversions (or a series of partial Roth conversions) is one way if you don't need the funds. Or perhaps defer Social Security or other payments and live off of tax advantaged funds when you can. Plan ahead for best results.


Yes, I suppose you can say that's "The best way", if you never have a lot of medical expenses in your final years - but a lot of people do. Including long-term care expenses, which become much more likely the older you get to be. In which case you can have enough deductible medical expenses to offset whatever you take out of an IRA, let alone the RMD.

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