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Old 02-03-2018, 12:59 PM
 
Location: SC
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If you reach the age of mandatory withdrawals (70?) from your IRA and Roth, you you don't actually need that money because you are just living on saving accounts, what do you do with that cash?

Do you just shift to a regular savings accounts, or is there some other kind of sheltered account you can send it to? Or is this when you starting giving a lot of money away?
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Old 02-03-2018, 01:12 PM
 
Location: Central Mexico and Central Florida
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We realized last year that we are never going to spend down our savings/IRAs, etc. We now contribute 50% of our income to charities (I have a large pension plus we have SS). At some point when we are older (65 now), we will start to give our savings to charities as well. I would rather be alive and see my money go to good deeds, rather than have charities waid for bequests after my death.
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Old 02-03-2018, 01:20 PM
 
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I don't know how much money you have in your accounts, but I would probably take only the minimum required annual withdrawl, and either add to regular savings; or since it sounds like you don't really need the money, donate some or all of it to charities of your choice, as dothetwist suggests.


Either way, it's a good problem to have.
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Old 02-03-2018, 01:20 PM
 
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just reinvest it in what ever it was in or close to it in a taxable brokerage account . give the gains to charity
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Old 02-03-2018, 02:18 PM
 
Location: SC
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Quote:
Originally Posted by dothetwist View Post
We realized last year that we are never going to spend down our savings/IRAs, etc. We now contribute 50% of our income to charities (I have a large pension plus we have SS). At some point when we are older (65 now), we will start to give our savings to charities as well. I would rather be alive and see my money go to good deeds, rather than have charities waid for bequests after my death.
I agree. Right now, half of my "give away" money goes to "Operation Smile." I think in the future, once I am past 59.5 I will also start giving to St. Jude. In the meantime, I am still looking for an 'honest' way to avoid the tax man when I reach 70.

Quote:
Originally Posted by ged_782 View Post
I don't know how much money you have in your accounts, but I would probably take only the minimum required annual withdrawl, and either add to regular savings; or since it sounds like you don't really need the money, donate some or all of it to charities of your choice, as dothetwist suggests.


Either way, it's a good problem to have.
And you are right, it is a good problem.

Quote:
Originally Posted by mathjak107 View Post
just reinvest it in what ever it was in or close to it in a taxable brokerage account . give the gains to charity
Looks like the current gift tax is $14,000. I guess that is the best way to go, to start distributing to siblings. And then charities. Thanks.
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Old 02-03-2018, 03:43 PM
 
11,118 posts, read 8,523,617 times
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Even if one is financially comfortable, I always find it odd that people don't know what to do with available discretionary income. So much so that one has to inquire of strangers on the internet. Isn't planning for RMD a part of normal retirement planning? Personal projects, charities, funding social programs, helping the poor, endowing scholarships, helping a viable start up, etc.

OP, I'm not trying to talk negatively about you. I just find it odd that in today's world, people blessed to have money are not plugged into general "need" of the world around them.
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Old 02-03-2018, 03:58 PM
 
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just because you are aware of different causes does not mean you just want to hand them dollar bills so getting an education on more efficient ways of giving can be helpful .

there are ways of giving that are better than other ways .

just because he has money to donate does not mean he knows exactly where he wants to donate it yet , but he may want that deduction now .

perhaps he wants to donate a sizable sum and not drips and drabs yet get his yearly tax deduction .

fidelity investments has charitable gift accounts you can set up that can do all of the above .

some charitable trusts will even pay you an income for your donation and allow you to take the deduction .

https://www.fidelity.com/growing-man...ritable-giving
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Old 02-03-2018, 03:59 PM
 
Location: Florida -
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I don't think most people are anxiously waiting until they start drawing out their RMD's, so they can afford to get by on a day-to-day basis. However, RMD's can help one offset inflation, provide added discretionary funds for helping the kids/grandkids and provide an investment base for future potential healthcare needs.
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Old 02-03-2018, 04:12 PM
 
Location: Ypsilanti, MI
2,430 posts, read 3,657,283 times
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Quote:
Originally Posted by blktoptrvl View Post
............, or is there some other kind of sheltered account you can send it to?............
I am pretty sure you cannot place the surplus funds in another IRA or tax deferred account. I may be wrong but research it before you do this.
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Old 02-03-2018, 04:20 PM
 
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you cannot put the rmd money in an ira . you need to have earned income for that and then it is a contribution . .
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