In 2024 we must take a $65,000 distribution (year 1 of 10) from an inherited IRA. We also inherited some bonds in a taxable account that will throw off $30,000 in dividends, mostly of which are not qualified. We do not need either of the funds for our expenses, as my pension and side-hustle cover these. I have an appropriate amount of withholding for both of these sources of income. Our tax bracket is 22%
I'm trying to learn the best tax strategy for both the bonds and the IRA.
The bonds would have a LTCG of $9,000 if sold. Ideally, I would like to get these out of the taxable account and maybe swap for a total stock market investment.
-Am I correct that I should calculate a tax of 22% of 95,000 or ~$20,000?
-Should I include this amount in either the W-4R and/or W-4 (line 4a) with my side hustle?
-Should I open a DAF and transfer the sale of the bonds to it? Then funds would be available for 2024 charitable giving instead of cash.
I'm trying to learn the best tax strategy for both the bonds and the IRA.
The bonds would have a LTCG of $9,000 if sold. Ideally, I would like to get these out of the taxable account and maybe swap for a total stock market investment.
-Am I correct that I should calculate a tax of 22% of 95,000 or ~$20,000?
-Should I include this amount in either the W-4R and/or W-4 (line 4a) with my side hustle?
-Should I open a DAF and transfer the sale of the bonds to it? Then funds would be available for 2024 charitable giving instead of cash.
Statistics: Posted by A440 — Sun Dec 31, 2023 10:52 am — Replies 0 — Views 65