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262 Don’t Make Me Say I Told You So

Consider taking money from these accounts now, even
before you need it – There is little doubt that taxes are going

up in the future, so you might want to take distributions now
and pay your partner, Uncle Sam, less than you might have to

in years to come. If you’re already taking withdrawals, consider
taking more than you have to now so that you pay lower taxes

on those withdrawals compared with higher future tax rates.

Estate Taxes

Even after you pass away, Uncle Sam isn’t through with you. He’s
going to stick his hand in your pocket one more time to make

sure he hasn’t missed anything. Estate taxes are taxes that may
be assessed against people who have assets valued at amounts

over a threshold set by the government. This is called a “taxable
estate.”

Transfers to a spouse and to qualified charitable organizations

are generally exempt from estate and gift taxes. In addition to
the federal government, some states also impose estate taxes,
also known as inheritance taxes.

The rates of return used in the RMD projections are
compounded annually and do not represent the performance

of any specific security. There is no guarantee that the selected

Chapter 6: Your Action Plan