82 • RUBY, WILDING & SWANSBURG 2M0a1r 7t yt iasxpcauytisn eg xtphier eI Ri nS a2t0a2 53 .2F. 5r opme r yc ee na rt es fi xf e oc tni ,v we et a’ lxl ar as st eu. m e Here’s what it looks like for his $700,000 IRA in a rising tax environment: IRA Value: $700,000 | Assumed Tax Liability: 25% Years 1-5, 32.5% 6+ Pre-Tax Growth Rate: 5% Receive RMDs from Age 7 2 to Age 90, Per IRS Rules
$ 233,465
Total Taxes Paid on RMDs
Taxes Paid on Growth of Reinvested RMDs
$ 74,386
Taxes Paid by Heirs on Remaining IRA Value at Death (Age 90)
$ 216,240
$ 5 24, 091
TOTAL TAXES PAID
Example shown for illustrative purposes only and are not guaranteed. That’s a total of $ 524,091 —on his $700,000 IRA! Rising Taxes . . . In Dollars and Cents Tt ahxiensg ss twa yeer de nt’ ht el o soakmi neg. gArse ayto fuo rmMa ya rrt ey m’ s eamc cboeurn, tt he ev emn oi fd he li ss showed he could pay $ 415,000 in taxes on his $700,000 IRA. But things are much worse if—like us—you believe taxes aMraertygowinoguludpenidn utphepafyuitnugre$. Because, in this scenario, 5 24,000 in taxes—$1 09 ,000 more than if his taxes stayed the same.
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