Got hit with a stupid tax today

[vytoland]

Should have put it into a Roth IRA. Pay me now or pay me later, IRS is going to get it eventually.

That's what I do with half of my RMD. So my retirement is funding my next retirement.....

rayb

the TOTAL of your annual RMD withdrawal is included in your taxable income.....

 

[GKC]

stupid tax = RMD..required minimum distribution forced on folks 70 1/2 years old to withdraw $$ from their retirement accounts and then pay tax ON THE WITHDRAWALS.....

Well...I would say that a stupid tax is a tax on someone who does something stupid. In this case, you are forced to comply, so I don't see that as your (or anyone else's so affected) fault.

In the mid-80s, the company I worked for (GTE then, Verizon now) had a mandatory retirement policy; you had to retire at age 70 1/2 or earlier. (That isn't the case now...has been ruled age discrimination.) As the division HR manager, I had to sit down with this little old lady who was approaching her 70.5 milestone. I told her that if she didn't elect a retirement option (the choices were lump sum, and several different annuities) then the company would choose for her, and their choice might not be her best option. She cried and cried...her husband was dead, her children grown and gone, and uninvolved...all she had was her job. I felt pretty darn low that day.

 

[BigBill]

Tax? Yup one of my investment funds taxed me more.

First years ago we retires got no social security raise. I called my investor and gave me a raise. No I'm sitting tight. At 67 yo I'm thinking about giving money to my kids each month. I'll never use it all. I saved for my golden years it turned out to be castiron.

 

[snubbyfan]

I've been to Las Vegas and I agree, roll up the windows and air freshener wouldn't hurt.

You obviously haven't been to Kentucky in early May when the temp is 72, the sky is the definition of blue, everything is blooming and budding out and there was a heavy rain a couple days before to settle the dust and rinse things off. Doesn't get any better weatherwise than what the Ohio River Valley is like today.

Sounds like driving in the mountains of West Virginia on a beautiful spring day.
I'm not even sure if our air conditioner works.

 

[Muley Gil]

Sounds like driving in the mountains of West Virginia on a beautiful spring day.
I'm not even sure if our air conditioner works.

Or in the Blue Ridge mountains of Southwest Virginia. The sky couldn't have been any bluer today.