2009 RMD

So it is that time of year you need to make a RMD decision.  Yes, I know Congress waived the requirement but is that the smart decision?

If you believe as I do that income tax rates for high net worth individuals will be increasing in the very near future.  Some of you may have seen a drop in taxable income besides not having to take the RMD in 2009.  No longer earning a wage or board fee, taxable portfolio income or rental income fell whatever the reason, you might want to consider withdrawing more from your IRA this year and incur the tax now rather than later.

Tax preparation is between you and your accountant, but from an economic perspective you might be money ahead by paying the lower tax rate now and not waiting to see how high Congress and President Obama raise them. 

Make the call to your accountant today if you have not already done so and ask the question "How much of a tax increase would make me wish I made a withdrawal this year and not waived the RMD?"

Posted by Bradley Fluetsch at 12/28/2009 7:28 AM
Categories: Economics
Tags: retirement tax investment IRA rate Obama President 2009 RMD Congress
 

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