Quote:
Originally Posted by dewilson58
Thoughts: Market will be back, able to convert more dollars today. & Convert to maximize "lower" tax brackets.
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not sure I get why the price of equity has any relationship to the taxable bracket, etc.
Thinking about this more, the RMD is based upon the closing value of the IRA at the end of year. So if the market is ramped into the end of the year, and then sells off by 30%, you are taking a big hit on the total asset values by the calculation of the RMD, if you have to take a significant percentage out when the market is down 30%. . .
I still don't get the logic unless the increase is at a very low to zero tax rate, based upon social security and the taxable limit of tax free income. . so if the social security is $35K and you are allowed an extra $20K of income prior to taxation, and your RMD is $10K, then yes, taking an additional $10K out with very low taxes makes sense, as long as it then goes back into investments. . .
something like that makes sense, but many RMD put them over the limit. .
anyway, much more fun than corporate finance at 64