Ask Terry Questions IRA Distributions

IRA Distributions

By Terry Savage on January 21, 2019 | Investments

Effective Jan 1, 2019 my wife and I are both retired. We don’t want to start Social Security benefits until 2020 and we have enough after-tax savings to get us through to that date. Without any taxable income in 2019, does it make sense to take some distribution from IRA’s so that we at least pay taxes on the maximum level for 12% tax bracket? (even if we don’t need or use that distribution).

Terry Says

Sure, at this point, why not?  You’ll get the money essentially tax free.  And since you won’t need it, consider putting it into a deferred income annuity.  It allows your money to grow tax-deferred for your choice of years into the future — and then gives you a larger annual check.  Search my columns for “annuities” for several articles explaining how they work.  Or click here to get StanTheAnnuityMan’s DIA booklet.

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