Western-Central Lower Michigan | Traditional IRA's are kind of a Tax Trap for seniors. The key is to get going on moving the IRA when you start, dont always just take the minimum. Take it out and re invest it in a normal joint account or gift it if you feel generous.
Most people have not heard of Medicare Income-Related Monthly Adjustment Amount or IRMA for short. When you get old and arent "using your retirement $" your Traditional IRA continues to grow and so does how much you must take out every year. Then Life happens, and you die... Your surviving spouse's tax bracket changes and IRMA can kick in sooner. Your survivor must use your schedule to take money from your IRA.
One thing you can do is have your custodian that holds your IRA write checks to Charity (or your church) and you give PRE TAXES as you do not have to pay taxes on charitable donations when given directly from your IRA.
I was stingy pre retirement, too busy to give and I earned what I made (why give it away). So now I am sort of making up for that... |
Safe withdrawal rate for retirement
