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I would go step further and I would try to work in a Roth conversion strategy (before 70.5) using taxable savings and or spousal benefits to pay taxes on the yearly conversions.
With both husband and wife taking full SS benefits at age 70 and then also having to deal with RMD (Required Minimum Distributions) starting at 70.5 I believe more "file, suspend, and take then take spousal benefit" couples should take a hard look at tax strategies starting with Roth conversions.
I have often wondered if the 4% rule of taking distributions has been superseded by RMD. If you are being required to take distributions (so that taxes can be paid starting at age 70.5) why not pay your taxes earlier by implementing Roth conversion strategies?
Comments
I would go step further and I would try to work in a Roth conversion strategy (before 70.5) using taxable savings and or spousal benefits to pay taxes on the yearly conversions.
With both husband and wife taking full SS benefits at age 70 and then also having to deal with RMD (Required Minimum Distributions) starting at 70.5 I believe more "file, suspend, and take then take spousal benefit" couples should take a hard look at tax strategies starting with Roth conversions.
I have often wondered if the 4% rule of taking distributions has been superseded by RMD. If you are being required to take distributions (so that taxes can be paid starting at age 70.5) why not pay your taxes earlier by implementing Roth conversion strategies?