Quote:
Originally Posted by Sabella
Does anybody know when you turn 73 and you have to take your RMD from an IRA And you deferred compensation plan besides charity donations or switching to a Roth IRA (which is I understand that it’s not possible unless you are employed )are there any other way legally to not take any distributions or to reduce tax liability?
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So you have been successful,
you haven't paid taxes on part of your earnings,
you have made money like many billionaires, millionaires, and other wealthy investors,
and you think that you shouldn't owe any money like they do?
Taxes are a by product of success, everyone
should pay their share, You have been successful? Great! pay your share, and invest the remainder again!
and personally, I would rather be paying taxes than begging for handout from the government.
Lets say your incremental tax rate is 25% on all the RMDs right now
Let's say a reasonable investment return is 8% per year.
You can get back to even within three years. .
So if you still can, roll over as much as you can from your IRA to a Roth or a taxable brokerage account, up to 25% incremental tax rate, and reinvest the after tax dollars in the same way you have or visit with your advisor and reinvest it for 8% target growth. . in three years plus, you will be back to where you are now. . . say 5% interest rate/annual return, you are whole again in 4 years. .
If you think that millionaires / billionaires don't pay taxes as a general rule, you are missing the point of investing. . millionaries/billionaires focus on making money successfully. .
only CPAs are trained to get apoplectic with very large tax bills (the technical term is tax adverse) and i love my CPA friends . .
former finance (not accounting) guy