asset withdrawal schedule
In the book Stay Rich for Life, Ed gives a timeline for withdrawing assets. The 1st is pretax assets ie 403,pension. The 2nd is already taxed money, but not capital gains. What does he mean by that? I understand that he wants to take advantage of the step up in cost basis after someone passes on. What would not come under that category? The last withdrawal is a Roth IRA. Thanks for the info
Permalink Submitted by Alan - IRA critic on Mon, 2013-03-25 19:02
Assets not receiving a basis adjustment at death are tax deferred retirement plans including annuities and IRAs, also NUA if you distributed employer shares for NUA purposes. The general guidelines can usually be tweaked at the individual level according to the individual’s specific financial profile and goals.
Permalink Submitted by margaret christy on Mon, 2013-03-25 19:31
Do you mean a traditional IRA which I do not have. Since I just have investments then I would not have anythingin this category?
Permalink Submitted by Alan - IRA critic on Mon, 2013-03-25 20:08
If you don’t have any balances in retirement plans or annuities, and just have a taxable brokerage or mutual fund accounts, your assets will receive a basis adjustment at your death. Your beneficiaries would not have to pay capital gains on gains that occurred while you held these investments.