I know that using our Trad IRA money can be used once that level is hit. I already converted my SEP into my Roth and about 45% or our holdings is in my DW Trad 401k plan, so these last few years we are just maximizing the 401k Roth plan, our own Roth's and the rest goes into the taxable fund holdings. Any extra money goes into the taxable account so that's pretty much it. Will live off our Trad IRA money (depending whatever brackets we can stay under) until SS starts.To the OP, what is your Long-Term Care.
Once you start paying for Long-Term Care, your medical expenses will probably high enough that itemizing will be advantageous. Thus, part of the withdrawals from Traditional IRA (expenses above 7.5% of AGI that raise your itemized deductions above the standard deduction) will be essentially tax-free. We are keeping a sizable Traditional IRA balance for lifetime QCDs and LTC balances, while balancing the total tIRA balance that our heirs can handle as an inherited IRA.
Statistics: Posted by ROIGuy — Mon Feb 19, 2024 12:26 pm — Replies 15 — Views 1767