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re: 401k - Putting in more than the company match pros and cons
Posted on 6/25/22 at 4:21 pm to KillTheGophers
Posted on 6/25/22 at 4:21 pm to KillTheGophers
quote:
The con is the taxes due on distribution - many people are not prepared for this when the RMDs start calling.
They take the taxes out when you do the RMD.
For many if not most people, they will be in a lower bracket when they get the RMD.
Maybe I don’t understand what you are saying?
1
Posted on 6/26/22 at 7:26 am to makersmark1
That may be true, but keep in mind tax cuts are expiring in a few years, so tax brackets are likely to be higher. Also, you need to consider what happens when a spouse passes away. It’s quite possible you could move from Married Filing Jointly status to single Filer status, and the tax threshold drops significantly, while the RMD will continue to increase.
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