Liquidating distribution worksheet

Convert another ,000 in 2016, pay the tax (if any), then you have ,000 to withdraw in 2021.

Convert another ,000 in 2017, pay the tax (if any), then you have ,000 to withdraw in 2022.

Take a look at that table and you might notice two problems.

First, there’s no money to provide for living expenses in years one through five.

It requires a long term commitment to a rigid withdrawal scheme with severe penalties for messing up withdrawals. It’s the plan I’m following to fund the next twenty five years of my early retirement before reaching age 59.5.

In other words, it’s very difficult to deviate from the 72t withdrawal plan before reaching age 59.5, and if you do so by accident, you’ll feel the snap of the trap and lose ten percent of your withdrawals backdated to your very first 72t withdrawal (ouch! By cleverly maxing out our tax deferred savings options, we owed almost nothing in taxes every year in spite of our combined (very very low) six figure income.

Travel back a few years in time to our recent military conflicts and take a journey with an infantryman across the arid desert landscape cut by wadis and pockmarked with rocks.

This is where it pays to have some taxable investments on hand to get you through the first five years of early retirement while you’re setting up the Roth IRA Conversion Ladder.A wild animal can’t think ahead like us higher order beasts.When the animal is out on patrol, a well placed trap can ensnare the unsuspecting creature.The end result is a leg caught in trap and the choice (that isn’t really a choice) to gnaw its own leg off.A leg, from just above the knee down to the foot, is about ten percent of a human’s body weight.

Search for liquidating distribution worksheet:

liquidating distribution worksheet-19liquidating distribution worksheet-83liquidating distribution worksheet-9liquidating distribution worksheet-89

You will have $30,000 of ordinary income in 2015 due to the conversion, and might owe tax on that amount depending on your filing status and other income earned during the year.

Leave a Reply

Your email address will not be published. Required fields are marked *

One thought on “liquidating distribution worksheet”