If there is about 3% change I/we be alive past age 80 and blessed to have 500K in RMDs -- we consider that's a double-blessings. Paying tax on such large RMDs -- is least of our worries. We would love to have more of that HUGE $RMD pain :-) Tax diversification is nice., understand "unspent" ROTHs are possibly best suited for heirs (in higher tax brackets). HSAs are great too. Post Secure ACT 2.0 -- now we have more years to Roth-convert and/or QCD some of the Trad-IRA monies before RMDs kick-in at future/lager age of 75 (for most folks, do check your applicable RMD year/date if born about 1959) .. When you combine - QCDs, consider/donating to charity as beneficiary on Trad-IRAs, large medical costs/needs (over 7% AGI), or LTC care costs such as SNF/CCRC/Memory-care etc .. can nearly covered tax-free (over 7% AGI) from Trad-IRAs. Also large Trad-IRAs allow possibility of FIRE, it could handle/mitigate Sequence of Returns better, premature death, or disability or death too !! Bless us with large Trad-IRAs -- we will happily figure ways to make-use of those (even if needing to pay large RMD taxes in some years)
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If there is about 3% change I/we be alive past age 80 and blessed to have 500K in RMDs -- we consider that's a double-blessings. Paying tax on such large RMDs -- is least of our worries. We would love to have more of that HUGE $RMD pain :-) Tax diversification is nice., understand "unspent" ROTHs are possibly best suited for heirs (in higher tax brackets). HSAs are great too. Post Secure ACT 2.0 -- now we have more years to Roth-convert and/or QCD some of the Trad-IRA monies before RMDs kick-in at future/lager age of 75 (for most folks, do check your applicable RMD year/date if born about 1959) .. When you combine - QCDs, consider/donating to charity as beneficiary on Trad-IRAs, large medical costs/needs (over 7% AGI), or LTC care costs such as SNF/CCRC/Memory-care etc .. can nearly covered tax-free (over 7% AGI) from Trad-IRAs. Also large Trad-IRAs allow possibility of FIRE, it could handle/mitigate Sequence of Returns better, premature death, or disability or death too !! Bless us with large Trad-IRAs -- we will happily figure ways to make-use of those (even if needing to pay large RMD taxes in some years)
Post: Vaguely Right
Link to comment from January 8, 2023