Timing of withdrawal/deposits shown in tabular Account Statements

George Thompson · 2025-01-12T20:42:59Z

I have entered all my recent information and thoroughly reviewed my inputs and the outputs. This will be the first year of retirement (since 2022) we will be drawing on our retirement funds since my wife & I lived comfortably on part-time travel nursing & engineering consulting income. I don't believe that will be the case in 2025. I want to take real action now based on the Account Statements report. See the attached screenshot. A couple of questions: 1. To meet projected spending in 2025, we must take the following actions: a) Transfer $4,689 in interest income from our taxable account to our cash account. b) Transfer $10k from our HSA to cover medical expenses to our cash account (we already have enough documented medical expenses to empty our HSA accounts so we can do that anytime). c) Withdraw $31,928 from my IRA to deposit in our cash account. Is the interest earned in the taxable and growth shown for the tax-deferred based on the earnings for the entirety of 2025? I plan to transfer these funds over at the beginning of the year, reducing the account balances and associated earnings for the rest of the year. (albeit not a lot). What should be the timing for these withdrawals to ensure the tool forecast is valid? I would have to take the taxable interest and IRA growth at the end of the year to maintain the validity of the tool results. This first year, it will have a negligible impact but, in subsequent years, the withdrawals will be more than $100k. Can you provide some guidance for making these funding transfers in the real world? 2. I believe the Expense Statement shows the taxes on the IRA withdrawal as a 2026 expense. I have read several posts on this topic and know about the iterative issue concerning taxes and tax-deferred withdrawals. So I will be making estimated tax payments in 2025 to handle these (luckily it will not affect our plan in a significant way). Am I correct in my interpretation of the Expense Statement? thanks! Account-Statements.pdf

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Gaby Hecht

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January 16, 2025 3:10 pm

@ricke

Regarding A2. My tactic is to withdraw most of the money from IRA to taxable at the beginning of the year but keep enough to withdraw/pay taxed in December. The money should be invested in taxable usually in equity. I prefer shrinking my IRA to reduce future RMD and to let the taxable grow faster since it may have a step-up capability when you leave the world, so no capital gain.

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