If you are married filing jointly, and have around $30K from SS, you should pull enough from your IRA so that you use up the standard deduction. You may have no or very little tax liability at $30K SS and $30K IRA distributions (depends on whether you get an extended standard deduction for being old). Long term capital gains are taxed at 0% up to about $125K of income when married filing jointly. However, qualified dividends cause more of your social security to be taxed, so the exact answer is complicated as to how much qualified dividends or capital gains will cost you.
Do a mock tax return or use a tax calculator to find out when you should transition from IRA withdrawals to taxable to minimize tax. Play with the inputs to optimize where you should do withdrawals.
Do a mock tax return or use a tax calculator to find out when you should transition from IRA withdrawals to taxable to minimize tax. Play with the inputs to optimize where you should do withdrawals.
Statistics: Posted by suemarkp — Thu Sep 05, 2024 9:22 pm — Replies 25 — Views 1584
