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Old 12-30-2017, 01:52 PM
 
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Quote:
Originally Posted by mathjak107 View Post
all income is taxed , however if you delay ss it is easier to get tax free withdrawals from your ira money or low tax withdrawals just using the standard deduction and exemptions-we used to get
Is this because your yearly income will probably be lower so you are taxed at a different rate which would include IRA withdrawals?
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Old 12-30-2017, 01:58 PM
 
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No ,it is because if you have no other income besides Roth , cash set a side and pulling out up to 40k from Ira money will leave you with very little taxable income . Taking ss will leave you much higher and you lose the ability to take much from iras with just the standard deductions and exemptions offsetting income
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Old 12-30-2017, 02:37 PM
 
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Quote:
Originally Posted by mathjak107 View Post
No ,it is because if you have no other income besides Roth , cash set a side and pulling out up to 40k from Ira money will leave you with very little taxable income . Taking ss will leave you much higher and you lose the ability to take much from iras with just the standard deductions and exemptions offsetting income
Thank you.
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Old 12-30-2017, 08:32 PM
 
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Originally Posted by FiveLoaves View Post
I'm just wondering if this merits consideration....If you pay Taxes by withdrawing extra IRA Money.....you're missing out on some compounding over time. Maybe it's better to make monthly Tax Payments from SS, when you start drawing on it. Just thinking out loud here.

If you start your SS before FRA, don't they treat IRA withdrawals as Income. You have to give some back if you go over a limit ??
You are offset if your income is from work while receiving SS benefits under FRA. If your income is from investments/savings, no, you are not subject to the offset.
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Old 12-31-2017, 05:46 AM
 
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Originally Posted by kat in aiken View Post
You are offset if your income is from work while receiving SS benefits under FRA. If your income is from investments/savings, no, you are not subject to the offset.
But what if your investment is income from working (401k) including employer contributions? Is that considered savings or work related income which SS penalizes you for?
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Old 12-31-2017, 05:51 AM
 
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401k income ,ira income ,etc is not earned income. there is no earnings limit for purposes of giving back .

it is only earned income from working .
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Old 12-31-2017, 06:00 AM
 
Location: RVA
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In that situation, where one is only drawing tIRA and then adding SS, be very careful of the Tax Torpedo when hitting that no/low tax to well taxed threshold where SS goes from being untaxed to suddenly 85% of it taxed. Of all the freaking tax simplification claims made by the GOP, not once did I read any change to index that income level.
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Old 12-31-2017, 07:07 AM
 
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it is the lower incomes that have to be th most careful . as i demonstrated a few times , taking an extra 1k from an ira when you are around the edges can see as much as 47% of that extra 1k vanish as a marginal tax
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Old 12-31-2017, 01:21 PM
 
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Am I following this correctly- is the question whether to draw down 401k/IRA funds and delay taking social security?

So if I retire a with a pension I can either take ss and basically replace my entire final year salary and leave my retirement funds until mandatory withdrawal or

I can retire and begin to immediately draw down my 401k/IRA and delay taking ss until those funds are depleted or I reach 70? Again the pension plus the retirement distributions equal my entire final year income.
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Old 12-31-2017, 01:39 PM
 
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all our situations are unique to each of us so you have to run the numbers .
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