| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
I'm accepting the SERP, and a financial planner suggested an interesting strategy for me to follow: Put all the pension rollover into an IRA with multiple funds. Live off the (taxed) cash, which will bring me in two years to age 59-1/2, when I can get at the IRA without penalty. By that time the $200K IRA stuff will have made up the approx. $30K tax-free that I was living off. That way, I keep everything in the IRA, and don't pay more tax on the yield produced. Assuming that the ungovernment doesn't raise taxes substantially. Didn't I hear something about them taxing *un*realized gains in IRA funds? Did that happen?
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 155.1 | No tax on living off savings | TPS::FALOR | Ken Falor | Tue Apr 14 1992 10:30 | 15 |
I forgot to mention the main thing. If I lived off the yield from invested pension funds, the income would be taxed. If I live off my savings, I don't pay any income tax. In fact, I might be eligible for a tax credit. At least until I start taking income from the investment. Though even a low-yield money market would produce a yield that would have to be taxed at year-end, and probably estimated and paid quarterly. But it would be a minor extra compared to living off the savings at about $1200/month. I think I'm going to have to do a lot of what-if analysis in detail. | |||||