401(K) and RMDs
07-26-2013, 09:26 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Dec 2007
Position: Retired
Posts: 404
401(K) and RMDs
Have any of you retired folks started to look at the tax implications involved with Required Minimum Distributions on your 401(K) and IRA's? I am still about 4 1/2 years away from RMDs but I looked at the basics the other day and I am going to be forced to take just over 6% of the total value of my 401(K) and IRA's when I turn 70 1/2. The percentage goes on up to 7.5% at age 75. This will kick me up to a higher tax bracket plus cost me more for MediCare. Although we are currently living well within our means on what we have coming in and don't really need the 401(K) or IRA income, I guess I need to start taking some distributions now in order to prevent this in the future. Anybody else having this "problem" and have any suggestions.
07-26-2013, 04:27 PM
#2
With The Resistance
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,191
Originally Posted by Flyinhigh
Have any of you retired folks started to look at the tax implications involved with Required Minimum Distributions on your 401(K) and IRA's? I am still about 4 1/2 years away from RMDs but I looked at the basics the other day and I am going to be forced to take just over 6% of the total value of my 401(K) and IRA's when I turn 70 1/2. The percentage goes on up to 7.5% at age 75. This will kick me up to a higher tax bracket plus cost me more for MediCare. Although we are currently living well within our means on what we have coming in and don't really need the 401(K) or IRA income, I guess I need to start taking some distributions now in order to prevent this in the future. Anybody else having this "problem" and have any suggestions.
Best of luck and enjoy your retirement.
07-27-2013, 05:22 AM
#3
Gets Weekends Off
Thread Starter
Joined APC: Dec 2007
Position: Retired
Posts: 404
Jungle,
Thanks for the reply. You sort of confirmed what I was thinking. One of the hardest transitions to make in retirement is going from a saver to a spender. For over 44 years we put away for our retirement and lived within our means. Now that retirement is here, the old habits die hard. We probably will start to take distributions next year to minimize the impact on MediCare costs.
You will be at retirement age before you know it. You sound like the kind of person that has been a saver also and will be able to enjoy that well earned retirement.
Thanks for the reply. You sort of confirmed what I was thinking. One of the hardest transitions to make in retirement is going from a saver to a spender. For over 44 years we put away for our retirement and lived within our means. Now that retirement is here, the old habits die hard. We probably will start to take distributions next year to minimize the impact on MediCare costs.
You will be at retirement age before you know it. You sound like the kind of person that has been a saver also and will be able to enjoy that well earned retirement.
07-31-2013, 06:54 AM
#4
Gets Weekends Off
Joined APC: Mar 2005
Posts: 392
Originally Posted by Flyinhigh
Jungle,
Thanks for the reply. You sort of confirmed what I was thinking. One of the hardest transitions to make in retirement is going from a saver to a spender. For over 44 years we put away for our retirement and lived within our means. Now that retirement is here, the old habits die hard. We probably will start to take distributions next year to minimize the impact on MediCare costs.
You will be at retirement age before you know it. You sound like the kind of person that has been a saver also and will be able to enjoy that well earned retirement.
Thanks for the reply. You sort of confirmed what I was thinking. One of the hardest transitions to make in retirement is going from a saver to a spender. For over 44 years we put away for our retirement and lived within our means. Now that retirement is here, the old habits die hard. We probably will start to take distributions next year to minimize the impact on MediCare costs.
You will be at retirement age before you know it. You sound like the kind of person that has been a saver also and will be able to enjoy that well earned retirement.
I hope to be you someday. My wife and I are saving as much as we can for retirement and are fortunately in a position to do so.
Enjoy the retirement and I hope to have your problem someday regarding the RMD.
