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Regular 401k, Regular IRA, and my wife's Roth IRA plus our Investment?


I'm using simple terminology to help others who may benefit from my questions.

Facts: our planned retirement age 62, won't live in USA, we will have 5 sources of income: my 401k + IRA + military pension, her IRA , & our investments.

Unknowns: Social Security for us, & my employer's pension; not planning on them.

1. I have a regular 401k. Would like to know what mandatory US government deductions (e.g., taxes) will I owe on each withdrawal? A simple line-item answer is fine.

2. Same question for my traditional IRA, & for my wife's Roth IRA.

3. Our investments are made with after-tax dollars. Since I already paid taxes on that money before investing it, when I reach 62, will I have to pay taxes on my withdrawals? If so, would that be double-taxation: the money was taxed before I invested it & then the gov't will tax it again upon withdrawal? Remember: I also paid tax on the dividends and capital gains thru the years.

4. Do RMDs apply to IRAs & 401Ks?

regular 401ks and traditional 401ks get added together and taxed as ordinary income. If you take lump sum distributions then they may withhold 30% becasue you won't be residing in USA (that's a MAY).

Roth IRA is different. Assuming it's in for the right amount of time it's a non-taxable event.

After tax dollars that have had dividends and capital gains already paid on would not be taxed at all. Treat that no differently than you are currently doing so.

RMD's apply to 401ks and traditional IRA's but not to ROTH IRA's. ROTH IRA's also have better estate planning options than the 401k and traditional IRA.

1. Your 401K withdrawls will be subject to regular income taxes in the year you take the cash.

2. Your traditional IRA works the same as your 401K.
2b. A Roth IRA's money is withdrawn tax-free.

3. For investments that are not part of a 401K or an IRA, you will owe taxes on the gains, but not on the original purchase of the investments. Ex. You paid $12,000 for stocks that are now worth $20,000. Before you bought the stock, you had alredy paid taxes on the $12,000. When you sell the stocks, you pay capital gains taxes on the $8,000 gain.

4. I don't know.

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