Income tax on investments

From: Jerry Conley <jcrev@ncn.net>
Subject: Income tax on investments
Date: Tue, 18 Aug 1998 15:03:17 -0500

Next Article (by Author): Re: Investing "Louis J. Schwarz, CFP, RFC"
Previous Article (by Author): purchase of one share Bertrand Horwitz
Articles sorted by: [Date] [Author] [Subject]

I am trying to project the taxes I will have to pay on the gains from my
investments once I begin to draw on them during retirement. 

I have some after tax investments that are not tax-deferred and I have some
investments in IRA & 403(b) that are deferred.

Presuming that I have no income and begin to live off of my investments,
that all of my investments are long-term, that I am married filing jointly,
and that my tax bracket is 15%, what will I pay in taxes on $36,000 from my
tax-deferred withdrawals? And at what tax % rate? 

In comparison, what if that $36,000 comes from after tax investments with a
basis of say $10,000?

Another question would be will the tax rate be different on the withdrawal
of tax-deferred investments if other income pushes the income above the 15%
rate level?

I am trying to figure out which investments I should tap into first, the
after-tax or the tax-deferred.

Thanks in advance for any help you can give.

Jerry Conley




- -

Next Article (by Author): Re: Investing "Louis J. Schwarz, CFP, RFC"
Previous Article (by Author): purchase of one share Bertrand Horwitz
Articles sorted by: [Date] [Author] [Subject]

Go to Jeff Salisbury LWGate Home Page.