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View Poll Results: When did you start withdrawing for your IRAs?
I started withdrawing before required (MRD). 17 58.62%
I waited until required. 12 41.38%
Voters: 29. You may not vote on this poll

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Old 01-16-2016, 10:33 AM
 
Location: Columbia SC
8,948 posts, read 7,725,979 times
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Trying to setup a pool. Seems I did it...LOL
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Old 01-16-2016, 10:49 AM
 
Location: OH>IL>CO>CT
5,227 posts, read 8,388,588 times
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I started w/d at age 63 in order to reduce the effect that increased taxable income (ala RMDs) has on increasing the percentage of Social Security benefits that become taxable, which I did not start until age 70. I used a process called "topping up the bracket" to set the amount of the "early" w/d.
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Old 01-16-2016, 11:50 AM
 
5,392 posts, read 6,529,269 times
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Quote:
Originally Posted by reed303 View Post
I started w/d at age 63 in order to reduce the effect that increased taxable income (ala RMDs) has on increasing the percentage of Social Security benefits that become taxable, which I did not start until age 70. I used a process called "topping up the bracket" to set the amount of the "early" w/d.
This is what I intended to do but given current stock market and Ira returns I will hold off until both recover ..if ever

I did not answer your poll because it is in past tense. But it is my intent to begin withdrawals prior to rmd
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Old 01-16-2016, 02:04 PM
 
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I don't have a lot of room to top up my current bracket.


I'm looking at some ways to reduce my tax bracket and also looking at what will happen when the first spouse dies.


I don't think we will ever be in a lower tax bracket without doing things I may not want to be bothered with. I also, don't expect to ever need this money unless their is some catastropic economic meltdown or medical situation.


In that case, I may wait for RMD's or I may decide to be generous and pay the tax so our heirs don't have to pay it.
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Old 01-16-2016, 02:14 PM
 
Location: VT; previously MD & NJ
2,185 posts, read 1,340,059 times
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I voted that I already had withdrawn from my IRA. But what you can't say in a poll is whether or not you are doing it on a regular basis or if you are taking it for daily living expenses or just periodically.

In my case, I have an inherited IRA from my mother and have to take RMDs on that because she was past 70.5 when she died and I inherited.

From my own IRAs, I periodically take a few thousand here and there, but not enough to bump my income taxes. I also have non-retirement accounts that I tap from time to time.

Most of my daily/monthly expenses are covered by Social Security, which I took at 62. Having a paid-off house is wonderful.
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Old 01-17-2016, 01:29 PM
 
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An easy way to accomplish this would be to convert a traditional IRA to a Roth before age 70.5. The Roth IRA would NOT be subject to RMDs although you would pay taxes on the conversion. However, if you are an early retiree and have little taxable income, you could really make an impact early in your retirement to minimize your RMDs later.
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Old 01-17-2016, 01:53 PM
 
13,874 posts, read 7,386,288 times
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Quote:
Originally Posted by jlawrence01 View Post
An easy way to accomplish this would be to convert a traditional IRA to a Roth before age 70.5. The Roth IRA would NOT be subject to RMDs although you would pay taxes on the conversion. However, if you are an early retiree and have little taxable income, you could really make an impact early in your retirement to minimize your RMDs later.
I wish I could participate in a Roth 401(k) now. I filled out the paperwork and sent it in to my employer to do that for January 1. The form had a Roth 401(k) option. I was informed that it was the boilerplate form from the financial services company and my company didn't offer a Roth 401(k) as an option. My income is too high to have a Roth IRA and I never got around to figuring out the mechanics of how to flip an IRA to a Roth IRA in December.

When I stop working, I figure I'll plug everything into a financial spreadsheet and see if it's worth converting 401(k) and IRA money to a Roth IRA. I'm 57 and that will be 8 years from now if I stay on plan. Right now, I'm planning to defer collecting Social Security until age 70. I don't have a strategy yet for my IRA/401(k) portfolio. When I'm 65, I'll have a better idea about tax treatment for Social Security and means-tested premiums for Medicare and supplemental. I may opt to convert as much as possible to a Roth but I don't have enough data yet to know what maximizes my return.
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Old 01-17-2016, 02:00 PM
 
Location: The South
5,214 posts, read 3,628,854 times
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I started in the year I turned 70.5. I'm now approaching 79. The tax bite gets worse every year. Wish I had had access to a Roth in the beginning.
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Old 01-17-2016, 05:22 PM
 
Location: Central Massachusetts
4,800 posts, read 4,843,254 times
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Starting this year at age 58.5. Not taking much in the grand scheme of things but I will begin. I am allowed to since this is TSP and I am forced into retirement due to loss of military position. I will start with $1k per month until Jan 2018 when I will be making a decision because I get another piece of my retirement pie. I cannot ever stop once I begin but I can lower it to $25.00 a month which essentially is stopped.
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Old 01-17-2016, 08:16 PM
 
Location: R.I.
970 posts, read 603,310 times
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Quote:
Originally Posted by golfingduo View Post
Starting this year at age 58.5. Not taking much in the grand scheme of things but I will begin. I am allowed to since this is TSP and I am forced into retirement due to loss of military position. I will start with $1k per month until Jan 2018 when I will be making a decision because I get another piece of my retirement pie. I cannot ever stop once I begin but I can lower it to $25.00 a month which essentially is stopped.
I am planning the same TSP withdrawal as you from 64-70, then I will switch from my SS survivor's benefit to my own SS benefit at 70 and drop my TSP withdrawal to around 1.5%. Now if only the R.I. VA nurses could get the Boston VA nurses locality rate that would significantly bump up my pension, but doubt that will ever happen at least not while I am still working
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