How are your investments doing?

[Highlandr]

It's still a forced action. You have to move it from a non-taxed account to a taxed account, or you'll be penalized, usually at 25%.

Applies to inherited plans also. My dad started getting the RMD from his 401k at 73 (I think). When he passed in 2020 me and my siblings inherited the 401K and we get an RMD every year just like he was still alive. AND... we have to take it ALL within ten years of his passing.

 

[MossRoad]

Applies to inherited plans also. My dad started getting the RMD from his 401k at 73 (I think). When he passed in 2020 me and my siblings inherited the 401K and we get an RMD every year just like he was still alive. AND... we have to take it ALL within ten years of his passing.

Nice!

My dad didn't have any retirement or pension plans. Not much savings, either. But he did have two houses and a will that said to sell everything and split it evenly between us 5 kids. That was a very nice gift.

I'd have rather he lived longer than get that gift, but was and am still very grateful for it.

 

[zzvyb6]

Remember. The RMD is the result of saving money BEFORE taxes. The original deal was that you could lower your tax bracket while working and save money without paying income tax on that money. The flip-side of that decision is that you pay those taxes at some point so you have to start taking distributions (Required Minimum Distributions) before you die and start paying the taxes. Nothing says you have to “spend” the money. Simply withdraw, pay the taxes, and reinvest the “after-tax” money if that’s best for you.

I get it. No one likes taxes. But RMDs are the result of a decision WE made years ago when we were focused on the early stages of this saving journey.

(Reminds me of a saying about death and taxes …)

Except that my tax bracket has been jumped TWICE and is way over what I was making in my good engineering job. So there's been no 'savings' for me at all.

 

[MossRoad]

Except that my tax bracket has been jumped TWICE and is way over what I was making in my good engineering job. So there's been no 'savings' for me at all.

What would the money be worth if you'd have stuffed it under your mattress all those years?

 

[ultrarunner]

If you go back several decades....

View attachment 4483915

I left out income means testing or pricing…

I have a recent retired coworker asked to come back and she is very cautious saying higher income means higher premiums…

 

[ultrarunner]

What would the money be worth if you'd have stuffed it under your mattress all those years?

Or bought US gold bullion coins… one average Joe had over 2 million in old ammo boxes…