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so...technically, one could 'game the system' by withdrawing only 13k a year (current limit for a head of household) and not pay any taxes on their 401k stash....right? assuming of course they've allocated enough money in other accounts (IRAs, cash, etc.) to supplement the rest of the income they'd need in retirement...
When you hit age 70 1/2, there are required minimum distributions. You get put on a distribution schedule where it gets spent to zero by the time you become the world's oldest man. For a lot of affluent retirees, they chug along paying little Federal income tax and then bump into RMD and the Social Security "tax torpedo" at age 70 1/2 where they're suddenly paying Federal income taxes on their Social Security check.
When you hit age 70 1/2, there are required minimum distributions. You get put on a distribution schedule where it gets spent to zero by the time you become the world's oldest man. For a lot of affluent retirees, they chug along paying little Federal income tax and then bump into RMD and the Social Security "tax torpedo" at age 70 1/2 where they're suddenly paying Federal income taxes on their Social Security check.
so...technically, one could 'game the system' by withdrawing only 13k a year (current limit for a head of household) and not pay any taxes on their 401k stash....right? assuming of course they've allocated enough money in other accounts (IRAs, cash, etc.) to supplement the rest of the income they'd need in retirement...
That's not gaming the system but you'd need to be prepared by having enough assets in taxable accounts that you can supplement living off of without substantial capital gains unless you can live off of 13k
That's not gaming the system but you'd need to be prepared by having enough assets in taxable accounts that you can supplement living off of without substantial capital gains unless you can live off of 13k
If you read above (you can read, right?), you'd see that that's exactly what I said...no need to be a parrot, and no need to "contribute" when you don't have anything worthy to say. Oh, nevermind, I just realized it's "you". Lol you're the 'dude' who's always right and corrects everyone over silly, unimportant mistakes and minute details; the dude that has no sense of humor. Lol. I thought I had you on my ignore list...how'd you get yourself un-ignored?
Guess I gotta update the list again... ill take care of it now.
Last edited by Thinking-man; 08-16-2017 at 06:08 PM..
If you read above (you can read, right?), you'd see that that's exactly what I said...no need to be a parrot, and no need to "contribute" when you don't have anything worthy to say. Oh, nevermind, I just realized it's "you". Lol you're the 'dude' who's always right and corrects everyone over silly, unimportant mistakes and minute details; the dude that has no sense of humor. Lol. I thought I had you on my ignore list...how'd you get yourself un-ignored?
Guess I gotta update the list again... ill take care of it now.
Actually in your post you included iras as a vehicle to supplement your income which would impact the taxation of your 401k withdrawals. There is no reason to be butt hurt when you don't know exactly what you are talking about. Speaking of someone who likes to be right, like yourself alluding that another person doesn't know what "networth" means when the correct term is net worth, I'm sure me pointing out your mistake bothers you but that's what you get for being a smartass. Maybe you're mad because I'm more knowledgeable in finance than you are and better at the smartass game to boot. Does it sting?
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