quote:
Sounds like you and your wife have done very well for yourselves.
So when we all reach that 65 year mark and start drawing on the tax deferred retirement money, what % tax do we pay?
That would depend on what other sources of income you have, how much you are drawing out of your 401K and tax laws at the time. In general, you should be paying less taxes than you are while working. Social Security income is not taxed if that is your only income source. With other sources of income, depending on how much, portions of your Social Security become taxable, but not all of it. I am still in the process of figuring all of this out and tuning my withholdings accordingly.
Pioneer 222 Sportfish
Yamaha 250
I’m turning 70 1/2 in a few months and have to start taking $ out of my SEP any ideas of the best way?
I don’t know of a “best” way. You will have to start taking minimum distributions based on the IRS tables bouncing your age against your life expectancy. It should change every year as you grow older, but I am not a CPA, I would check with a pro to make sure. This is from the IRS website:
Calculating the required minimum distribution
The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if the sole beneficiary is the owner’s spouse who is ten or more years younger than the owner.
worksheets to calculate the required amount
tables to calculate the RMD during the participant or IRA owner’s life:
Joint Life and Last Survivor Expectancy Table – if your spouse is the sole beneficiary and is more than 10 years younger than you
Uniform Lifetime Table - for all other IRA owners calculating their own withdrawals
Pioneer 222 Sportfish
Yamaha 250