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Default OT How much IRA to take out?

Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.

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Default OT How much IRA to take out?

On Tue, 25 Oct 2011 20:37:01 -0400, Metspitzer
wrote:

Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


Um, consult your Human Resource Office and tax preparation person?

Taking money is a bad idea:

- Penalty for early withdrawal

- Taxed again as income for the year?

- Possible state taxes on income the same year.

I would advice against it. Just my option.

Contact your HR Manager.
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Default OT How much IRA to take out?

On Oct 25, 8:37*pm, Metspitzer wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. *How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


If you are 70 and 1/2 there is a minimum distribution of about 4%.
Since you pay income tax on it, what ever it adds to your total will
be taxed at that maximum. Same for anything you take out but there
are penalties for early withdrawal. Most I know, myself included,
take the minimum distribution.
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Default OT How much IRA to take out?

On Tue, 25 Oct 2011 17:54:42 -0700 (PDT), Frank
wrote:

On Oct 25, 8:37*pm, Metspitzer wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. *How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


If you are 70 and 1/2 there is a minimum distribution of about 4%.
Since you pay income tax on it, what ever it adds to your total will
be taxed at that maximum. Same for anything you take out but there
are penalties for early withdrawal. Most I know, myself included,
take the minimum distribution.


I forgot to mention I am 52/disabled so there is no penalty to take it
out. I called it an IRA. It is actually a Vanguard mutual fund.

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Default OT How much IRA to take out?

On 10/25/2011 7:37 PM, Metspitzer wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?


Depends on what the definition of "too much" is?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?


It's pretty simple to estimate if your deductions are also similar to
last year's your marginal rate will begin at the point were in last
year. Question is where you are wrt the breakpoints which are
obtainable from tax tables at the irs site.

If you're subject to AMT or other special circumstances it's more
complex, obviously.

If you can recommend an "active" group where this would be on topic I
would appreciate it.


misc.taxes.moderated

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Default OT How much IRA to take out?

On 10/25/2011 8:40 PM, Metspitzer wrote:
....

I forgot to mention I am 52/disabled so there is no penalty to take it
out. I called it an IRA. It is actually a Vanguard mutual fund.


Well, those two aren't exclusive; you could hold mutual fund shares in
an IRA.

If it is a traditional IRA, the income is taxed as ordinary income; if
it were a Roth IRA it would not be taxable, if it is _not_ an IRA at
all, then it would be either short- or long-term capital gains depending
on how long the sold shares have been held.

Anything approximating a real answer will depend on the actual answers.

I would recommend (again) misc.taxes.moderated but figure out and
provide the correct information before posting the question.

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Default OT How much IRA to take out?

On 10/25/2011 7:54 PM, Oren wrote:
....

Taking money is a bad idea:

- Penalty for early withdrawal


Agree there, but there are circumstances in which can avoid the early
withdrawal penalty even if under 59=1/2 (which OP later indicates is but
meets one of them).

- Taxed again as income for the year?


If traditional IRA, yes; Roth, no.

- Possible state taxes on income the same year.

I would advice against it. Just my option.

....

Would note that depending on circumstances (size of the IRA being a
significant one), it's possible that if wait the size of a required RMD
might drive the taxpayer into even higher marginal tax bracket than
would be if were to maximize the margin between existing bracket and the
next higher one (assuming under the maximum, obviously). In that case
it makes sense to take out at least that amount after 59-1/2 but yet
before 70-1/2.

Also, it depends on what one's expected income is going to be going
forward outside of the IRA withdrawals and what one uses as estimates
(guesses) of future marginal tax rates. One can make at least
reasonable presumptions that there's a good likelihood those may be
going up. Does one want to gamble on that not happening or not is the
question--the devil you know vs the one in the future you don't.

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Default OT How much IRA to take out?

On 10/25/11 8:37 PM, Metspitzer wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


This concept for IRA withdrawals is called "topping up the bracket".
It's basically fairly simple to figure. Look at your 2010 tax return
at the line for TAXABLE INCOME (Line 27 on 1040A). Then look at the
bracket ranges (ie $0-$8375 = 10% for Single filers)

The difference between Line 27, and the $8375 (in this example) is how
much room you have left to stay in the 10% bracket (again this an
example). Your Taxable Income, equivalent Bracket, and File Status may
vary.

This also assumes you are the correct age, etc to not having an "early
withdrawal" penalties, etc. Also IIRC, you must make the withdrawal
before DEC 31 to apply to that years return. So you need to do a rough
"what-if" return before the end of the year to get a good idea of how
much you can "top up the bracket.

in addition to NG misc.taxes.moderated
the forum at http://www.city-data.com/forum/retirement/
has good discussions

I have been doing this since age 59.5, now 67.

BTW, is your Vanguard MF account specifically a Traditional or
Rollover IRA account ?? If it's a Roth IRA, or a non-IRA account, then
none of this applies.


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Default OT How much IRA to take out?

On Tue, 25 Oct 2011 20:37:01 -0400, Metspitzer
wrote:

Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


misc.taxes.moderated
Thanks everyone
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Default OT How much IRA to take out?

On 10/25/2011 9:40 PM, Metspitzer wrote:
On Tue, 25 Oct 2011 17:54:42 -0700 (PDT), Frank
wrote:

On Oct 25, 8:37 pm, wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?

My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. How do you figure out what percent
tax you will have to pay?

If you can recommend an "active" group where this would be on topic I
would appreciate it.


If you are 70 and 1/2 there is a minimum distribution of about 4%.
Since you pay income tax on it, what ever it adds to your total will
be taxed at that maximum. Same for anything you take out but there
are penalties for early withdrawal. Most I know, myself included,
take the minimum distribution.


I forgot to mention I am 52/disabled so there is no penalty to take it
out. I called it an IRA. It is actually a Vanguard mutual fund.


Personally, if I did not need the money, I would leave it alone and let
it compound tax free. Don't know how your mutual fund is doing but
think you can rotate it without penalty.

I did not take any withdrawals from IRA's or 401k until it was mandated
and since I still have work income can buy Roth's.


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Default OT How much IRA to take out?

In article ,
Metspitzer wrote:


I forgot to mention I am 52/disabled so there is no penalty to take it
out. I called it an IRA. It is actually a Vanguard mutual fund.


It is a Vanguard mutual fund within an IRA. This alone tells me that you
don't quite understand how the thing works and you should probably get a
CPA or your HR dude involved to help walk you through it. The IRA
withdrawals are complicated.

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Default OT How much IRA to take out?

I would
1) call your accountant
2) call the fund manager, where you have your funds
3) look for the information on a .gov website
3a) print out the website, and date your printout, because
the gov likes to change the rules when they good and feel
like it.

--
Christopher A. Young
Learn more about Jesus
www.lds.org
..


"Metspitzer" wrote in message
...
Anyone know of a rough way to figure out what is the right
amount of
money to take out of retirement without paying too much tax
that year?

My income will be the same this year is it was the last, but
I want to
withdraw some of my retirement. How do you figure out what
percent
tax you will have to pay?

If you can recommend an "active" group where this would be
on topic I
would appreciate it.


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Default OT How much IRA to take out?

On Oct 26, 7:44*am, Frank wrote:
On 10/25/2011 9:40 PM, Metspitzer wrote:





On Tue, 25 Oct 2011 17:54:42 -0700 (PDT), Frank
*wrote:


On Oct 25, 8:37 pm, *wrote:
Anyone know of a rough way to figure out what is the right amount of
money to take out of retirement without paying too much tax that year?


My income will be the same this year is it was the last, but I want to
withdraw some of my retirement. *How do you figure out what percent
tax you will have to pay?


If you can recommend an "active" group where this would be on topic I
would appreciate it.


If you are 70 and 1/2 there is a minimum distribution of about 4%.
Since you pay income tax on it, what ever it adds to your total will
be taxed at that maximum. *Same for anything you take out but there
are penalties for early withdrawal. *Most I know, myself included,
take the minimum distribution.


I forgot to mention I am 52/disabled so there is no penalty to take it
out. *I called it an IRA. *It is actually a Vanguard mutual fund.


....

Personally, if I did not need the money, I would leave it alone and let
it compound tax free. *Don't know how your mutual fund is doing but
think you can rotate it without penalty.


What do you mean by "rotate it"?

Do you mean "exchange it" - same Mutual Fund family, different Mutual
Fund?

Do you mean "switch it" - Different Mutual Fund family, which requires
a liquidation and a purchase?

What do you mean by "without penalty"?

There may not be any IRS related penalties to exchange and/or switch
funds, but depending on the share class, holding period and account
rules, there may be "penalties" related to fund changes within the
account itself.

I did not take any withdrawals from IRA's or 401k until it was mandated
and since I still have work income can buy Roth's.


You don't "buy Roth's". You can open a Roth IRA, you can contribute to
a Roth IRA, you can convert a Traditional IRA to a Roth IRA and you
can recharacterize a Roth IRA back to a Traditional IRA, but a Roth
IRA is not something you "buy".


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Default OT How much IRA to take out?

On Oct 26, 8:02*am, "Stormin Mormon"
wrote:
I would
1) call your accountant
2) call the fund manager, where you have your funds
3) look for the information on a .gov website
3a) print out the website, and date your printout, because
the gov likes to change the rules when they good and feel
like it.

--
Christopher A. Young
Learn more about Jesus
*www.lds.org
.

"Metspitzer" wrote in message

...
Anyone know of a rough way to figure out what is the right
amount of
money to take out of retirement without paying too much tax
that year?

My income will be the same this year is it was the last, but
I want to
withdraw some of my retirement. *How do you figure out what
percent
tax you will have to pay?

If you can recommend an "active" group where this would be
on topic I
would appreciate it.


2) call the fund manager, where you have your funds

I doubt you can talk to the "fund manager" - the person or persons
that make the investment decisions within the portfolio. Even if you
could, he/she/they are not going to discuss the tax implications of
withdrawing money from an IRA.

Perhaps you meant to say:

2) call the custodian of your IRA
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Default OT How much IRA to take out?

On 10/26/2011 1:04 PM, DerbyDad03 wrote:
....

2) call the fund manager, where you have your funds

I doubt you can talk to the "fund manager" - the person or persons
that make the investment decisions within the portfolio. Even if you
could, he/she/they are not going to discuss the tax implications of
withdrawing money from an IRA.

Perhaps you meant to say:

2) call the custodian of your IRA


And they can tell them the process by which they can withdraw funds and
whether they are qualified or not, but they won't provide individual
investor tax advice, either--in fact, they will say the same
thing--"talk to your own advisor for tax advice".

Realistically they can't say anything else even if they wanted to; they
don't know enough of any client's overall situation to be able to make a
considered response just as none of us here can make any actual
recommendation; all can try to do is to point out considerations for OP
to keep in mind as goes forward. The most reliable one of which is that
advice is generally worth at least as little as you pay, and often
significantly less.

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Default OT How much IRA to take out?

On Oct 26, 3:26*pm, dpb wrote:
On 10/26/2011 1:04 PM, DerbyDad03 wrote:
...

2) call the fund manager, where you have your funds


I doubt you can talk to the "fund manager" - the person or persons
that make the investment decisions within the portfolio. Even if you
could, he/she/they are not going to discuss the tax implications of
withdrawing money from an IRA.


Perhaps you meant to say:


2) call the custodian of your IRA


And they can tell them the process by which they can withdraw funds and
whether they are qualified or not, but they won't provide individual
investor tax advice, either--in fact, they will say the same
thing--"talk to your own advisor for tax advice".

...

Realistically they can't say anything else even if they wanted to; they
don't know enough of any client's overall situation to be able to make a
considered response


Very often, the "custodian of the IRA" and the "advisor" are pretty
much (or can be) the same entity.

Let's say the custodian of my IRA is a wirehouse known as BFIF (Big
Friggin' Investment Firm).

Let's say the Financial Advisor works for BFFF. In most cases, both
the name of the firm (the Custodian) and the name of the Advisor is
going to be on the client's statement. If the client calls the
Custodian and gives them the account number, they should be able to
connect them with the Financial Advisor responsible for the account.
That Financial Advisor should already know about the client's overall
situation or should at least be able to ask the correct questions in
order to offer advice, assuming he is following the FINRA Know Your
Client rules.

Now, granted, there are many cases where the client has opened an IRA
directly with a Mutual Fund company (your Vanguards, Fidelities, et
al) and may have opted not to pay for "advice" and may indeed not have
anyone legally able to give him advice.

All that said, my response to the suggestion that he "call the fund
manager" still stands. There is *no* way the client is going get any
advice from the "fund manager" - the person or persons that make the
investment decisions within the portfolio.



just as none of us here can make any actual
recommendation; all can try to do is to point out considerations for OP
to keep in mind as goes forward. *The most reliable one of which is that
advice is generally worth at least as little as you pay, and often
significantly less. *

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On 10/26/2011 2:50 PM, DerbyDad03 wrote:
....

Very often, the "custodian of the IRA" and the "advisor" are pretty
much (or can be) the same entity.

Let's say the custodian of my IRA is a wirehouse known as BFIF (Big
Friggin' Investment Firm).

Let's say the Financial Advisor works for BFFF. In most cases, both
the name of the firm (the Custodian) and the name of the Advisor is
going to be on the client's statement. If the client calls the
Custodian and gives them the account number, they should be able to
connect them with the Financial Advisor responsible for the account.
That Financial Advisor should already know about the client's overall
situation or should at least be able to ask the correct questions in
order to offer advice, assuming he is following the FINRA Know Your
Client rules.

Now, granted, there are many cases where the client has opened an IRA
directly with a Mutual Fund company (your Vanguards, Fidelities, et
al) and may have opted not to pay for "advice" and may indeed not have
anyone legally able to give him advice.


IME it is extremely rare the investment adviser/custodian is also the
actual person in position to make actual tax advice. Not impossible,
but certainly not the norm for the average person. Of course, on
average, most folks don't really have either--the custodian is whoever
the employer uses in the employer program and the individual rarely if
ever talks to any of them--they may ask a HR person how the plan works
or get a selection/choice card once a year or so and that's about the
extent of involvement.

That again isn't to say that a self-employed individual or the very
astute (relatively) employee hasn't taken it upon themself to take
advantage of all available services, and has a personal relationship w/
either a specific representative of a large custodial company or w/ a
local but it's surely the exception rather than the rule.

Virtually everybody I know (and I myself) will still deal w/ the
custodian/investment side via the brokerage or investment advisor but
use an accountant or other tax service professional for tax advice and
possibly preparation as well. I suppose again like many things, there
are tendencies to follow different patterns in different locations of
the country, but the above surely is what I've seen/been accustomed to
rather than the combined-agent so-to-speak scenario.

All that said, my response to the suggestion that he "call the fund
manager" still stands. There is *no* way the client is going get any
advice from the "fund manager" - the person or persons that make the
investment decisions within the portfolio.

....

I didn't disagree w/ that at all; that's certainly correct and the
individual investor isn't even going to get to talk to them to ask;
they're just not publicly accessible, even other than as revealed by
annual reports and/or prospectus or the (very) rare other
announcement/mailing/report.

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