Torvy
Super Member
^not really, for many of us. RMD wasn't a thing until 1986. The contract is simply that we pay taxes on those funds upon withdrawal. Forced withdrawals wasn't part of the deal.
How are your investments doing?
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LittleBittyBigJohn
Veteran Member
We only got the Roth option on 401K a few years ago at my place of employment. I changed all my contributions to go that way about as soon as it became available. But sadly, most of mine is in traditional.
CH4Ohio
Veteran Member
I agree that it can be a bit of a shock when you see the numbers. Has been for me. But, as you say, it's not the worst problem you could have to deal with.
CH4Ohio
Veteran Member
So you've been concerned about this for 40 years now?
Torvy
Super Member
I've been concerned about my retirement plan for at least that long.
To combat some of the overreach, we retired early and withdraw a smaller amount that keeps us in the lower tax brackets on those funds. That should help keep forced withdrawals to smaller amounts.
RMDs are a horrible policy in general.
To combat some of the overreach, we retired early and withdraw a smaller amount that keeps us in the lower tax brackets on those funds. That should help keep forced withdrawals to smaller amounts.
RMDs are a horrible policy in general.
CH4Ohio
Veteran Member
I'm no tax expert, but seems like the alternative would be to let it accumulate until death when your estate pays the highest possible tax rate on the entire balance (37% currently, I believe) in one final distribution. Painful as it is, I know I can do better than that.