Retirement Withdrawals

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vnatale
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Retirement Withdrawals

Post by vnatale » Mon Aug 31, 2020 6:48 pm

In several of the topics in this forum I've read some discussions on retirement withdrawals.

I plan to look at the five programs discussed in this article. They are all aimed at professional advisors. Hopefully, there will will be some more affordable versions aimed at an individual.

Vinny

Easing Efficient Retirement Withdrawals

https://www.fa-mag.com/news/easing-effi ... 51208.html
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Retirement Withdrawals

Post by pp4me » Tue Sep 01, 2020 12:11 pm

I had to take my first RMD last year and also started SS. I decided to go with the strategy I read about on Bogleheads to have no taxes withheld on SS, take the RMD in one lump sum at the end of the year and pay the tax bill that would be due from the RMD. There is a special provision in the tax code that lets you avoid making estimated payments without penalty if you do this.

Then they went and suspended RMD's for this year in one of the COVID bills which has left me in a situation where I am going to have take an RMD just to pay the tax bill. So I will be calculating my taxes in December and taking a withdrawal with 100% of it going to the government. I think last year it was around 40% of the RMD but would have probably been greater this year since it was my first full year of SS.
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Re: Retirement Withdrawals

Post by vnatale » Wed Sep 02, 2020 9:27 pm

This is an EXTREMELY informative article.

And, it reaffirmed an answer I'd earlier got to my question above. Cannot make a charitable donation direct to a donor-advised fund. Has to go direct to the ultimate recipient.

Vinny



How to Downsize Your RMDs
You must start taking required minimum distributions from your IRA at age 70½. But you can reduce the tax bill.

https://www.kiplinger.com/article/retir ... -rmds.html
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Retirement Withdrawals

Post by Kbg » Wed Sep 02, 2020 10:28 pm

vnatale wrote:
Wed Sep 02, 2020 9:27 pm
This is an EXTREMELY informative article.

And, it reaffirmed an answer I'd earlier got to my question above. Cannot make a charitable donation direct to a donor-advised fund. Has to go direct to the ultimate recipient.
Vinny!!! YOU DA MAN

I had no idea you could even do a direct RMD to charity and it wouldn't count against your adjusted gross.
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vnatale
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Re: Retirement Withdrawals

Post by vnatale » Thu Sep 03, 2020 12:18 am

Kbg wrote:
Wed Sep 02, 2020 10:28 pm
vnatale wrote:
Wed Sep 02, 2020 9:27 pm
This is an EXTREMELY informative article.

And, it reaffirmed an answer I'd earlier got to my question above. Cannot make a charitable donation direct to a donor-advised fund. Has to go direct to the ultimate recipient.
Vinny!!! YOU DA MAN

I had no idea you could even do a direct RMD to charity and it wouldn't count against your adjusted gross.
Yes. And, of course, reducing your adjusted gross income leads to reducing the possibilities of hitting adjusted gross income limitations.

I've been on Medicare since 2016 and I've been carefully managing my adjusted gross income since 2015 (Medicare does a lookback to 2 years prior) so as to not have it put me into brackets wherein my Medicare premiums would be increased. Doing the above will be another thing to add to the bag of tricks to accomplish that goal.

Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Retirement Withdrawals

Post by barrett » Thu Sep 03, 2020 9:11 am

vnatale wrote:
Wed Sep 02, 2020 9:27 pm
You must start taking required minimum distributions from your IRA at age 70½. But you can reduce the tax bill.

https://www.kiplinger.com/article/retir ... -rmds.html
RMDs now start at age 72 except for individuals who turned 70&1/2 in 2019. I haven't read the Kitces article on this yet but here is a link:

https://www.kitces.com/blog/secure-act- ... -qcd-2020/
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Re: Retirement Withdrawals

Post by vnatale » Thu Sep 03, 2020 10:27 am

barrett wrote:
Thu Sep 03, 2020 9:11 am
vnatale wrote:
Wed Sep 02, 2020 9:27 pm
You must start taking required minimum distributions from your IRA at age 70½. But you can reduce the tax bill.

https://www.kiplinger.com/article/retir ... -rmds.html
RMDs now start at age 72 except for individuals who turned 70&1/2 in 2019. I haven't read the Kitces article on this yet but here is a link:

https://www.kitces.com/blog/secure-act- ... -qcd-2020/
Yes. You are correct of that change as a result of the SECURE Act. It had not yet been passed at the time of that article but I do believe the article made reference to the act and the proposed change.

Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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