On Wednesday, December 29, 2021 at 3:54:50 PM UTC-5, debbie.l...@gmail.com wrote:the total portfolio in all companies? Thanks.
I understand that retirees have to make withdrawals from retirement plans. My question is the rule 4% withdrawal amount is still a good approximation? And if you have different accounts in different companies, do you withdraw 4% from each or 4% from
one or several of the accounts. For 401ks, 403bs, 457s, each account has its own RMD that must be taken from that account.
--
RMDs are an increasing percentage of the account each year. The percetnages are based on the remaining life expectancy, For IRAs, you lump all of the same type of accounts together (Traditional, Roth), calculate the RMD and then can take it from any
Ira Smilovitz, EA
Leonia, NJ
I understand that retirees have to make withdrawals from retirement plans. My question is the rule 4% withdrawal amount is still a good approximation? And if you have different accounts in different companies, do you withdraw 4% from each or 4% fromthe total portfolio in all companies? Thanks.
--
I understand that retirees have to make withdrawals from
retirement plans. My question is the rule 4% withdrawal amount is
still a good approximation? And if you have different accounts in
different companies, do you withdraw 4% from each or 4% from the
total portfolio in all companies? Thanks.
On Wednesday, December 29, 2021 at 3:54:50 PM UTC-5, debbie.l...@gmail.com wrote:
I understand that retirees have to make withdrawals from
retirement plans. My question is the rule 4% withdrawal amount is
still a good approximation? And if you have different accounts in
different companies, do you withdraw 4% from each or 4% from the
total portfolio in all companies? Thanks.
RMDs are an increasing percentage of the account each year. The
percentages are based on the remaining life expectancy, For IRAs,
you lump all of the same type of accounts together (Traditional,
Roth), calculate the RMD and then can take it from any one or
several of the accounts. For 401ks, 403bs, 457s, each account has
its own RMD that must be taken from that account.
Adding to what Ira said - The 4% number is unrelated to the RMD. 4% is
what advisors typically consider the 'safe' longterm annual withdrawal
rate for a retiree.
The RMD, changing each year, will exceed 4% quickly,
at age 73, in fact.
One should set aside any excess withdrawal for future growth, not
just go with that number at the number to spend each year.
I haven't checked the forms, but I believe the QCD money is also
excluded from the computation for how much of your Social Security
benefit is taxable, and whether you are subject to the IRMAA
surcharge on your Medicare premium. If I'm mistaken, I'd welcome
correction on this point.
I haven't checked the forms, but I believe the QCD money is alsoThat's correct. The calculation of taxable Social Security
excluded from the computation for how much of your Social Security
benefit is taxable, and whether you are subject to the IRMAA
surcharge on your Medicare premium. If I'm mistaken, I'd welcome
correction on this point.
benefits uses Form 1040 line 4b, which is the taxable amount
of IRA distributions after subtracting the QCD. The IRMAA
calculation uses AGI, Form 1040 line 11, which excludes the
QCD.
(Form 1040 line numbers are for 2021.)
Bob Sandler
The net effect of the comments above regarding chariable contributions can in effect make your chariable contributions that come directly from your IRA fully tax-deductible, even if you don't itemize. But you have to be old enough to take RMD's forthat to work. (I don't know if the SECURE act froze the IRA-to-charity age at 70 1/2 or changed it to 72, but I assume it probably changed it.)
Sysop: | Keyop |
---|---|
Location: | Huddersfield, West Yorkshire, UK |
Users: | 293 |
Nodes: | 16 (2 / 14) |
Uptime: | 215:30:14 |
Calls: | 6,619 |
Calls today: | 1 |
Files: | 12,169 |
Messages: | 5,317,542 |