Question for Retired BH, over 59.5 with Roth Acct

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hawkfan55
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Joined: Thu Apr 03, 2014 9:04 pm

Question for Retired BH, over 59.5 with Roth Acct

Post by hawkfan55 » Tue Jan 16, 2018 5:28 pm

This question is for Retired Bogleheads who are over 59.5 years old and have a Roth IRA account(s)....

How do you plan to spend your Roth Assets?

A. Withdraw Roth Assets to supplement spending while keeping under the top of a chosen tax bracket
B. Withdraw from Roth for large special expenditures
C. Use for everyday spending
D. Pass on to heirs either before or after death

As for myself, I plan to do A, possibly B and D. Any other ideas how to maximize value of these assets?
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Chip
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Joined: Wed Feb 21, 2007 4:57 am

Re: Question for Retired BH, over 59.5 with Roth Acct

Post by Chip » Tue Jan 16, 2018 5:35 pm

Basically the same as you; B & D. A is unlikely unless we really ramp up spending.

TG2
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by TG2 » Tue Jan 16, 2018 11:08 pm

Haven't hit 59.5 yet, but the plan is definitely A, A, and A in that order, with a preference to delaying as long as reasonably possible.

Some to D, and B only when necessary. C not at all.


(And I hope that hawkfan stands for Seahawk fan....) :happy

jasg
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by jasg » Tue Jan 16, 2018 11:27 pm

Planning for D. RMDs will be sufficient and leave no need for A, B or C.

HIinvestor
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by HIinvestor » Tue Jan 16, 2018 11:30 pm

So far, it’s been watching Roth grow. We hope to leave it to our kids intact (D), but could tap it if needed.

TravelforFun
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by TravelforFun » Wed Jan 17, 2018 12:25 am

Roth money would be the last thing I touch.

TravelforFun

brother7
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by brother7 » Wed Jan 17, 2018 12:45 am

Question: Why did you add "while keeping under the top of a chosen tax bracket" to choice A?
Because AFAIK, Roth distributions are tax-free and therefore shouldn't move you to a higher tax bracket.

TG2
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by TG2 » Wed Jan 17, 2018 1:02 am

brother7 wrote:
Wed Jan 17, 2018 12:45 am
Question: Why did you add "while keeping under the top of a chosen tax bracket" to choice A?
Because AFAIK, Roth distributions are tax-free and therefore shouldn't move you to a higher tax bracket.
True. I was reading it the other way. Use Roth instead of other assets so that you don't go into the next bracket.

SGM
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by SGM » Wed Jan 17, 2018 3:19 am

It is unlikely we will ever spend from our Roth accounts. It is fun to watch it grow. I have decided on a more aggressive asset allocation because the time frame for the children inheriting it may be over 30 years if longevity is as high as the earlier generation.

2015
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by 2015 » Wed Jan 17, 2018 12:13 pm

HIinvestor wrote:
Tue Jan 16, 2018 11:30 pm
So far, it’s been watching Roth grow. We hope to leave it to our kids intact (D), but could tap it if needed.
+1

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David Jay
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Re: Question for Retired BH, over 59.5 with Roth Acct

Post by David Jay » Wed Jan 17, 2018 12:26 pm

2015 wrote:
Wed Jan 17, 2018 12:13 pm
HIinvestor wrote:
Tue Jan 16, 2018 11:30 pm
So far, it’s been watching Roth grow. We hope to leave it to our kids intact (D), but could tap it if needed.
+1
Same here. We don't need any Roth money while 2 spouses are alive, the surviving spouse may need to dip into the Roth if there is extreme longevity (95+). Otherwise it all goes to the kids.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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