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Personal Finance (Not Investing) • IRA Draw Down Strategy to Reduce RMD

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Note to Self: Google how NIIT is calculated and exactly what types of income are included to determine this.
This Fidelity retirement strategies tax estimator will show if you're going into NIIT territory, but you have to make sure to click on "Net investment income tax" on the results page. https://myguidance.fidelity.com/ftgw/pn ... or/welcome The estimator is available to anyone, you don't have to have an acct at Fido.
Thank you so much for the link.

The calculator appears to be subtracting my estimated medical deductions (about $49,000) from my total income, and thus, it says I don't owe NIIT.

Do I understand correctly that NIIT is based on MAGI, which is calculated starting with AGI, and AGI does not have medical deductions subtracted from it? (I do not have any other factors that would make my MAGI different than my AGI).
You are correct. If the calculator treats any itemized deductions (not just medical) as a reduction from NIIT MAGI, it is incorrect.
Somewhat alarming but good to know that Fidelity's calculator is flawed. Thanks for pointing that out.

Statistics: Posted by headedwest — Wed Jun 26, 2024 7:17 am — Replies 73 — Views 6966



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