Further to the thought of taking money out to avoid higher taxes in the future:
Assume you take an RMD of 100k. Also assume you are in the 20% tax bracket. You now have 80k to invest. So you must gain 20k to breakeven, then you must gain even more to profit because you will be paying the higher tax rate you sought to avoid. Doesn't make a lick of sense to me.
If you had left the 100k in it would go on making gains at the same rate as the 80k you took out.
Spano, you’re assuming gains. There’s also negative tax free “gains “ if your investments falls in value.
Look up what the penalties are for not taking a RMD.
I’m not contesting your math at all. What you say is true,,,,IF.
But all that aside, we will be taking the 2020 RMDS this calendar year.
