Investing - Fun Retirement Tables
These three tables
are important for retirement planning. They are subject to change and I
might have entered them incorrectly, so when it comes to detailed
planning or payment, check a more reliable source than me.
These are for 2023.
Also see
- Investing
- Investing - More Fun with Investing
- Investing - How to Choose a Mutual Fund
- Investing - Things I Have Learned in Retirement
- Investing - The Basics of US Income Taxes
- Investing - Retirement Money Tips
- Investing - Index Funds, ETFs, Advisors
- Investing - Fun Retirement Tables
Social Security Taxable Fraction
The
taxable fraction of your Social Security income is based on I =
Social_Security_income/2 + income from pensions, wages, interest,
dividends, and capital gains. If married, filing jointly, add the I for
both people.
If I is $25,000-$34,000 for single people or
$32,000-$44,000 for married and filing jointly, 50% of your Social
Security will be taxable.
Above these intervals, 85% of your Social Security will be taxable.
Social Security documents all say up to 50% or up to 85%, but as near as I can tell that means 50% or 85%.
(2023-09-14 - I am told that the "up to" is resolved by filling out the tax forms. Apparently the algorithm is too complex to document any other way. This reminds me of the HTML spec - HTML is defined by whatever the web browsers do.)
Medicare Surcharge - income related monthly adjusted amount (IRMAA)
For Medicare part B and D -
If
your earnings are over $97,000 ($194,000 if married) in any given year,
two years later your Medicare premium will have a surcharge. This is
recalculated annually.
By earnings they mean your adjusted gross income, modified by obscure things that I am not going to include here.
Table of Monthly Premium for Part B+D
single | married | premium | ||
| | |
| |
$0 - $97,000 | | $0 - $194,000 | $160.90 | |
$97,000 - $123,000 | | $194,000 - $246,000 | $230.80 + $12.20 | |
$123,000 - $153,000 | | $246,000 - $306,000 | $329.70 + $31.50 | |
$153,000 - $183,000 | | $306,000 - $366,000 | $428.60 + $50.70 | |
$183,000 - $500,000 | | $366,000 - $750,000 | $527.50 + $70.00 | |
$500,000 - | | $750,000 - | $560.50 + $76.40 |
Watch out for this when converting assets from IRA to Roth IRA.
IRA Required Minimum Distribution
RMDs
are required, now starting at age 73. For each age, there is a fraction
of your IRA that you must withdraw, expressed as a number of years (Y)
to empty it. The amount to withdraw is the total value of the IRA at the
end of the prior year divided by Y. This applies to all pretax
retirement accounts (IRA, 401K, 403B, etc.).
You must withdraw total_value/Y and include that as part of your taxable income. You cannot transfer it to a Roth.
Table of Required Minimum Distributions
Age | Y | % | Age | Y | % | Age | Y | % | |||||
| | | | | | | | | |
| |||
| | | | 90 | 12.2 | 8.2% | | 110 | 3.5 | 28.6% | |||
| | | | 91 | 11.5 | 8.7% | | 111 | 3.4 | 29.5% | |||
72 | 27.4 | 3.7% | | 92 | 10.8 | 9.3% | | 112 | 3.3 | 30.4% | |||
73 | 26.5 | 3.8% | | 93 | 10.1 | 10.0% | | 113 | 3.1 | 32.3% | |||
74 | 25.5 | 4.0% | | 94 | 9.5 | 10.6% | | 114 | 3.0 | 33.4% | |||
75 | 24.6 | 4.1% | | 95 | 8.9 | 11.3% | | 115 | 2.9 | 34.5% | |||
76 | 23.7 | 4.3% | | 96 | 8.4 | 12.0% | | 116 | 2.8 | 35.8% | |||
77 | 22.9 | 4.4% | | 97 | 7.8 | 12.9% | | 117 | 2.7 | 37.1% | |||
78 | 22.0 | 4.6% | | 98 | 7.3 | 13.7% | | 118 | 2.5 | 40.0% | |||
79 | 21.1 | 4.8% | | 99 | 6.8 | 14.8% | | 119 | 2.3 | 43.5% | |||
80 | 20.2 | 5.0% | | 100 | 6.4 | 15.7% | | 120+ | 2 | 50.0% | |||
81 | 19.4 | 5.2% | | 101 | 6.0 | 16.7% | | | |
| |||
82 | 18.5 | 5.5% | | 102 | 5.6 | 17.9% | | | |
| |||
83 | 17.7 | 5.7% | | 103 | 5.2 | 19.3% | | | |
| |||
84 | 16.8 | 6.0% | | 104 | 4.9 | 20.5% | | | |
| |||
85 | 16.0 | 6.3% | | 105 | 4.6 | 21.8% | | | |
| |||
86 | 15.2 | 6.6% | | 106 | 4.3 | 23.3% | | | |
| |||
87 | 14.4 | 7.0% | | 107 | 4.1 | 24.4% | | | |
| |||
88 | 13.7 | 7.3% | | 108 | 3.9 | 25.7% | | | |
| |||
89 | 12.9 | 7.8% | | 109 | 3.7 | 27.1% | | | |
|
If you are more than 10 years older that your spouse and your spouse is the sole beneficiary on the IRA then you get a new table. The table has your age horizontally and your spouse's age vertically and each entry is (as in the table above) your expected years of life (the inverse of the fractional withdrawal). Too much to document here, TIAA has the complete table - https://www.tiaa.org/public/pdf/rmd-joint-life-expect-table.pdf . (Thanks Gwyn P. Williams.)
If you do not take out the full RMD, you will be taxed 50% of the undistributed part.
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