Personal Investments • Why I am thinking of not doing Roth conversions...let me hear your feedback

The OP says his RMD's won't start until he's 75. Is that correct? I thought RMD's start at 72/73. What am I missing, here?

It depends on age; some of us missed out age 75 by microseconds (okay, more like a year for me) so we're stuck at 73. The original 74 "tier" apparently got lost in the final version of the legislation. I hope it gets resurrected.

We have not spent any time on this but how does delaying RMD's assist with any plans? You still need a plan for the entire tax deferred accounts and they grow over any 'extra' years all of which will be SS elected income years. So how does delaying RMD's achieve some positive goal(s) other than putting the choices back in the time chart?

That particular year (age 74) will be the final year I'll need to realize a significant-to-me amount of other income (well, unless I give it away) and it would be beneficial to not have it overlap with RMDs. While I could defer that first RMD to the next year, that wouldn't solve the problem since I'd then have (roughly) twice the RMD income in the following year. Amazingly Congress didn't consider my personal finances when they decided to ditch the age-74 plan. Of course increasing the age from 72 to 73 was beneficial to me; just not as beneficial as 74 would have been. Age 74 vs.75? I wouldn't have cared.

So for you who have planned significant income in the near 'over' 70 years of age the choices would matter.
Do you know if it would move the needle for folks that have planned from early on and do not have any required 'bumpy' income past 70 other than SS?

Since you mentioned it, I did intentionally plan from "early on" to have lumpy income "in the near 'over' 70 years of age"(?); what I didn't plan for were all the events that transpired between those decades ago and now that made that timing problematic. Of course other events that were roughly equally likely could have transpired that would have resulted in much less favorable outcomes. Ultimately, receiving any income at any time is usually a good "problem" to have.

By definition lumpy income past age 70 wouldn't move the needle for someone not having any, whether by accident or by design.

Statistics: Posted by tibbitts — Sat Jul 20, 2024 12:36 pm — Replies 86 — Views 9409

---