With all the confusion about the new Required Minimum Distribution requirements, specifically when they should start, Laura and I began to look at the real impact of taking them later. What we discovered is that it will most likely raise your tax bracket once you start your distribution, especially if your distribution doesn't start until age 75. The other impact of that is it will more than likely raise your Medicare premiums as well, since they are based on your income.
The best thing that you can do is to start planning early. Think about contributing to a ROTH or consider the implications of doing a ROTH conversion when it makes the most sense tax and income wise.
If you have questions and want to get an early start in addressing this, call us today at 256-417-4870
Mike Mickels is the President of CochranMickels Retirement Specialists and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. They also provide retirement and benefits training to Federal employees. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.