So next year is the year I turn 59 1/2. Thoughts on pulling money out of my IRA's assuming taxes will rise by the time I reach 70 1/2?
Please don't do that Ed. That would be catastrophic to your financial health. The ROTH IRA would be the last monies you want to touch and the traditional IRA's/retirement account would be the second to last.
Spend the taxable account funds as your bridge money (or better yet income whether earned or dividends)
Presumably you are still working, earning an income and maybe your spouse too. Presumably you would be retired at 72 (RMD's start at 72 now as one of the only benefits of the SECURE ACT) and presumably your spouse too. Your income will probably be less 12 years from now and you may be in a lower tax bracket anyway even if they raise the tax brackets. Also year 1 of RMD's is just under 4% of the account value. Not too bad assuming you wont have a boatload of passive income at retirement.
Next, you would be giving up the next 12 years of tax deferred capital gains and dividends. Your invested money should double every ten years conservatively unless you are in something crazy like 100% bonds returning next to nothing.
After you retire, although before you start taking social security, is a nice low income window to convert your traditional IRA/retirement accounts to a ROTH and pay the tax.
This is to say nothing of your wife/kids/heirs and the ability to "stretch" an inherited IRA's distributions over 10 years.
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