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Non-Tech : Kirk's Market Thoughts
COHR 191.250.0%2:57 PM EST
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To: Kirk © who wrote (12143)10/18/2021 9:51:41 PM
From: jc2020  Read Replies (1) of 26856
 
Kirk,

A thought about your large accumulated taxable returns in your IRA. Since you are trying to stay in a low tax bracket now there might be some options.

I have not done this as my pre-IRA retirement income before RMD did not allow between retirement pay and SS. Some like EKS on SI are rolling some of their Traditional IRAs into a ROTH. Essentially, taking some out (enough to stay in a particular tax bracket that will likely be lower than their RMD bracket) and paying the taxes to transfer into a ROTH where accumulation is not taxed thereafter. i.e. paying a lower tax on a portion early and then let it grow. They do it year after year to pay a lower rate until RMD and at the same time reduce the remainder RMD on taxable IRAs.

Nothing new although a thought for those who have big gains who can pay at a lower rate until maybe higher RMD rate. Simple math problem and easy to implement. With the current gubment higher rates are more likely but who knows?

Hard to grasp paying taxes early and drawing down the IRA acct at first but if you have a few years the rewards will be obvious. Like I said, waiting is what they want, so unlikely life expectancy events (for the house as they say in Vegas) reduces their payout odds for a surprise demise.

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