401K/IRA withdraw after retirement

[Tradd]

Just a question from curiosity. How do you do your withdrawals? Monthly? Quarterly, etc?

[iris lilies]

I have not reached the age of mandatory withdrawals so I’m not pulling any out to live on.

The last couple years I’ve pulled out $10,000 each year from my Roth IRA to make a contribution to bulldog rescue. This goes against financial wisdom because the Roth is already taxed and it can grow with no tax consequence. I can pull out money anytime with no taxes, but that’s just the most convenient way for me now to make charitable donations.

In six months, I will be old enough to start taking out money From regular IRA at no tax consequence to me or to the charity I donate it to,

I doubt that any of this addresses your question, But do consider tax consequences as you plan your withdrawals. I say “consider “but don’t necessarily let that drive your decisions. After we got hit with a ridiculously giant tax bill in recent years, I threw up my hands and gave up worrying about avoiding taxes.

[Tradd]

I’ve got at least 10 years to go. I was just curious.

[iris lilies]

I’ve got at least 10 years to go. I was just curious.

I meant to say, I haven’t yet reached the age of mandatory withdrawals.

[Alan]

I don't do withdrawals following any type of schedule, just whenever I have a project or other extraordinary expense which means 3 withdrawals over a 6 year period. I'm not sure how I'll do it once I reach the age of minimum required distributions, I have a few more years to contemplate that.



In six months, I will be old enough to start taking out money From regular IRA at no tax consequence to me or to the charity I donate it toJust out of curiosity, what does that mean?

[Rogar]

I've not started withdrawals from my retirements accounts yet and I really haven't decided when or how much to start yet, although the minimum required withdrawals will start soon. However when I was doing retirement planning I used the FIRE calculator to estimate expenses and various withdrawal strategies. I found it helpful in the planning stages and a bit of comfort for early retirement. There is an early retirement forum where this gets discussed routinely which I also used and got plenty of information there. I think this is the calculator I used.

https://www.firecalc.com/

[pinkytoe]

We just inherited an IRA from DH's mother after her death so we will have to take her RMD by the end of the year and then pay tax on it. Blecchh!! Our own RMDs are a few years awa so will take a look at the firecalc site Rogar sent. The tax implications scare me since they aren't Roths.

[iris lilies]

I don't do withdrawals following any type of schedule, just whenever I have a project or other extraordinary expense which means 3 withdrawals over a 6 year period. I'm not sure how I'll do it once I reach the age of minimum required distributions, I have a few more years to contemplate that.

Just out of curiosity, what does that mean?

https://www.fidelitycharitable.org/guidance/philanthropy/qualified-charitable-distribution.html

this article talks about “qualified charitable donations “what I’m talking about. For me, the advantage is I can give money to charitable groups and as it comes out of my IRA, it does not count as income that is taxed. This qualified charitable distribution goes directly from the custodian of the of my IRA to the charity.

[iris lilies]

Also, the age for taking Qualified Charitable Distributions is different than the age for Required Minimum Distributions from IRAs.

[rosarugosa]

Tradd: I take a distribution at the beginning of the year and put it into my savings account. Then I set up auto transfers to my checking account from savings on a monthly basis.

[Tradd]

Tradd: I take a distribution at the beginning of the year and put it into my savings account. Then I set up auto transfers to my checking account from savings on a monthly basis.

That’s the type of answer I was looking for. Thanks.

[Tybee]

I have done it the way Rosa did hers, and I have also done it with monthly automatic withdrawals directly from the IRA to my checking account.

[lmerullo]

DH and I aren't of age yet... That said, mom is and has been for some time. She takes the RMD end of October (annually) as a transfer from the IRA account to her checking. The financial institution that holds the IRA calculate s the tax and withhold / submits taxes for her. This is the arrangement we will also opt for when reaching the correct age.

[nswef]

We take the RMD in Oct. I do the charitable contribution with mine and husband takes his as income...My thought is I was going to give the charities the money from checking, so why not get the tax benefit? Only problem is sometimes they aren't sure who gave it to them or for what category...need to talk to the stock guy.

[iris lilies]

We take the RMD in Oct. I do the charitable contribution with mine and husband takes his as income...My thought is I was going to give the charities the money from checking, so why not get the tax benefit? Only problem is sometimes they aren't sure who gave it to them or for what category...need to talk to the stock guy.
That is a good tip. I will have to make sure our investment people make it clear to the charitable groups name of donor

[sweetana3]

Our Schwab account gave us a checkbook for our QCDs. Makes it really easy. Hubby just said we have another set of checks for funds we are using ourselves.

Only crazy issues are: one charity messed up the check and we had to fix that and then another small charity group did not get the check in the mail. They made it very hard to give to someone so we dropped them. Their loss.

[LDAHL]

Tradd: I take a distribution at the beginning of the year and put it into my savings account. Then I set up auto transfers to my checking account from savings on a monthly basis.

I do something somewhat similar. Distributions from a couple of sources go into a money market fund. Every month, I transfer 1/60 of the balance to checking. This tends to smooth out market fluctuations into a sort of five year average. I also toss the occasional windfall into the money fund to discourage spending it all at once.

At need I can make a large infrequent purchase from the money fund, essentially floating myself a five year loan. I used to try maintaining a sort of fixed asset amortization fund based on the estimated lives of various items, but it felt like too much work after awhile.

This works because I have a couple of stable sources (pension and SS) annuity income that cover day-to-day expenses. I think of the money fund transfers as a sort of dividend for “extras”.