Yes but there’s a difference in income and earned income. Retirement income is not earned as long as you are no longer working.
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Traditional or Roth IRA?
- Thread starter Eggmanmja01
- Start date
I am retired now so I cannot add more into my TSP for deferments. I maxed out every year to drop my tax bracket to as little as possible.
The only bills I have now are property tax, insurance and utilities. My current retirement is decent and I am still able to save a few grand a month, so I am just looking to keep my tax bracket lower. I have multiple 3-month CDs that turn over every 15 days for 3 months, in case I need the cash.
I believe I am in a good position financially, but I don't want money just sitting in a savings account not even making 1% interest. Since I am over 50, I plan on just putting the lump sum amount of 8k into an IRA.
I hope i am making sense. 😆
The only bills I have now are property tax, insurance and utilities. My current retirement is decent and I am still able to save a few grand a month, so I am just looking to keep my tax bracket lower. I have multiple 3-month CDs that turn over every 15 days for 3 months, in case I need the cash.
I believe I am in a good position financially, but I don't want money just sitting in a savings account not even making 1% interest. Since I am over 50, I plan on just putting the lump sum amount of 8k into an IRA.
I hope i am making sense. 😆
Yes sir so that being said take some out gradually so it won’t hit too hard. That being said it will be catastrophic at a must take time.
Yeah, that’s probably best since you’re not 65. It does may sense brother, your options are limited. I think you’ll be ok.
If you have very much in 401/IRA when you start taking RMD's, you will get beat up badly with taxes and IRRMA penalties for your withdrawals. Uncle Sam is going to get his cut; you just have to decide how and when you want to pay him.
ok, that's something I wasn't aware of and I'll have to look into to understand what all it affects...
It really depends on age. No penalty after 59 1/2 on 401k but yes taxes but again it depends on what tax bracket you are in and how much you withdraw.
The math says we don't really have a choice. Just Medicare difference is about 600k vs 325k for our lifetime if we wait. Taxes will SUCK, but I'm working on a plan for them to make the conversions happen before RMD's start.
RMD begins at 70.5 years of age?
