Retirement Year End Planning: Withdrawing from Assets
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®
4.7 • 1.1K Ratings
🗓️ 20 November 2024
⏱️ 43 minutes
🧾️ Download transcript
Summary
Join us in this insightful episode as we continue our series on year-end action items, focusing on optimizing your retirement planning. Today, we delve into the intricacies of withdrawing assets, discussing everything from flexible spending accounts to inherited IRAs. We also explore the concept of "gear, not stuff" with insights from Michael Easter, and how making thoughtful purchasing decisions can impact your financial health and the environment. Don't miss our deep dive into tax strategies and the importance of building a resilient retirement plan. Plus, we answer listener questions about decumulation, working with financial advisors, and more. Tune in to take actionable steps toward a secure and fulfilling retirement!
PRACTICAL PLANNING SEGMENT
(00:00) This week we continue to discuss year end action items to optimize your retirement planning
(00:50) We are gearing up for a retirement plan live case study for January. This time we will be focusing on someone who is single with no children.
(02:10) Roger shares an anecdote about having his kitchen cabinets painted and discusses gear versus stuff.
(05:00) Roger discusses the importance of buying high quality items that last.
(07:25) Today we're going to talk about accounts we should consider withdrawing money from before the end of the year. First up are FSA accounts.
(08:14) The next accounts we are going to talk about are inherited pre-tax accounts.
(09:30) If you inherited an IRA prior to January 1, 2020, your required minimum distribution is required to be taken out by the end of this year.
(10:48) What happens if you inherited an IRA after 2020?
(12:25) Since the Secure Act 2.0 started in 2023, the penalty for not taking the required minimum distribution is 25% of what you should have taken.
(13:35) The next type of required minimum distributions we are going to talk about are those that are age related for original IRA owners.
(15:03) Proactively taking qualified distributions can lower your overall tax rate in retirement.
LISTENER QUESTIONS
(20:44) Next Month, we'll focus on answering some of your questions on AskRoger.
(21:12) The first question comes from Scott about principal versus interest and decumulation.
(28:59) Next, Joy says she needs help with retirement planning and decumulation of assets.
(32:45) Mike asks about decumulation and resilience. How should pre-retirees position retirement assets as they reach the last five years or so before retirement?
(39:11) Tom asks about the five year rule for Roth 401k conversions.
SMART SPRINT
(41:08) Take a look at the items that we talked about in terms of withdrawing assets.
BONUS
(41:45) Roger reads another excerpt from his grandfather's war journal.
REFERENCES
Ask Roger
https://www.rogerwhitney.com/askroger
Michael Easter
https://twopct.com
Dinkytown Calculators- specifically the 10/40 tax estimator
https://dinkytown.net
Schwab Required Minimum Distribution Calculator
https://www.schwab.com/ira/ira-calculators/inherited-ira-distribution-calculator
Six Shot Saturday
https://6shotsaturday.com
Show notes created by https://headliner.app
Transcript
Click on a timestamp to play from that location
| 0:00.0 | The show is a proud member of the Retirement Podcast Network. It's all about gear, not stuff. |
| 0:08.2 | Michael Easter. Welcome to the show dedicated to helping you not just survive retirement, |
| 0:16.4 | but to have the confidence because you're doing the work to really lean in and rock it. |
| 0:21.9 | All right, today on the show, we are going to continue this month-long series on |
| 0:27.0 | year-end action items, things that we want to bring to the surface and examine so you can see |
| 0:32.6 | if there are any risks or opportunities you should be taking action on to optimize your retirement planning, |
| 0:39.8 | we're going to talk about withdrawing assets today. |
| 0:42.7 | Next week, we're going to talk about charitable giving and family giving. |
| 0:46.9 | In addition to that, we're going to answer some of your questions. |
| 0:50.1 | Before we get to all that, though, a couple of things. |
| 0:53.2 | Number one, we're gearing up for our retirement plan live case study for January. |
| 0:58.4 | That's where we take a volunteer from you, the people listening, bring them on the show, |
| 1:05.4 | and work through building a retirement plan of record that they can have confidence in following the process, |
| 1:11.7 | the agile process that we preach. |
| 1:14.5 | This January, we're going to be focusing on someone that is single with no children. |
| 1:20.5 | So if you are single with no children, there's no somebody that is, and want to raise your |
| 1:26.4 | hand to be the subject for this case study, we're going to have a |
| 1:31.0 | link in our Six Shot Saturday email just to a quick Google form where you can share a little bit |
| 1:36.4 | about yourself and we'll review all those so we can find the person to create a plan of record |
| 1:41.2 | for. So you'll get a link to that in Six Shot Saturday. And that means |
| 1:45.2 | we'd like you to be signed up for Six Shot Saturday, even if this isn't for you. It's a great |
| 1:51.2 | supplement to the show. You get a summary of the show. You get links to resources that we share. |
... |
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