About those RMDs (for the 70+ here) [View all]

[question everything]

Some years ago, after reading a story, we opened Roth IRAs and moved some funds from traditional IRA to lower the amounts that would be used for RMD (Required minimum withdrawal). Did it for two years but then realized that, hey, I don't need to reduce the amount of the IRAa; the withdrawal would be the amount to maintain our expenses.

But, the stock market has been going up and up. The Dow Jones is up 20%, NASDQ is 30%, I think. We are 50-50 so the value increased by 10% and after withdrawal of around 4% the funds are still 6% higher. Yes, I know, problems of the "haves," (until the market crashes..)

They yearly RNDs are calculated based on the value on Dec. 31st, and as we grow older, the denominator decreases.

We have had some unexpected expenses recently ($2,000 dental bridge repair) so decided to take more this month, above the minimum required. This should also reduce somewhat the amount required for 2020 and... I made sure that we are still at the 12% tax rate. One reason why I keep a spreadsheet year around, starting January.