Here's something else to keep in mind: Your RMD life expectancy factor changes every year, meaning the amount you must take out will also change. The formula for calculating an RMD is actually pretty straightforward: For simplicity's sake, let's assume a hypothetical investor has one IRA ...
Your RMD is determined by dividing the balance in any given account at the end of the prior calendar year by your life expectancyas determined by the IRS. If you are 75 and single, for example, the IRS says you can expect to live an additional 24.6 years. If the balance in your IRA...
the value of your pension has gone way up. You want to hold onto your cash cows for as long as possible. Your reasonable return of return divisor should be lowered to 1% – 2% in this low interest rate environment.
The key point is that an awareness of all these factors is critical for maximizing the value of a Roth conversion. That’s because this information can be used to time the Roth conversion in order to minimize the add-on effects of the additional income in the year of the ...
Your RMD is determined by dividing the balance in any given account at the end of the prior calendar year by your life expectancyas determined by the IRS. If you are 75 and single, for example, the IRS says you can expect to live an additional 24.6 years. If the balance in your IRA...