Nevertheless, in some situations the potential for higher income taxes may mean it's actually better not to postpone minimum withdrawals. In all these situations, one should run the numbers. In some cases, it may actually be less onerous from a tax standpoint to start making withdrawals even though the person is still working. In other cases, delay may be appropriate. A lot will depend on the anticipated return of the investments in the retirement accounts, the anticipated retirement age of the worker, size of the accounts, the taxability of the invested distributions and the participant's income-tax bracket.
Planning is the key.
To examine your specific situation more closely you can take advantage of our one-hour free consultation. We also have available a FREE summary of the Tax Relief Act of 1997. Give us a call at the above number to obtain your copy. Earl A. Clairmont is a Certified Public Accountant and Certified Financial Planner.