I am a 70 year old woman. I am currently working, but beginning next year I will not be. That means i will have to start taking the RMD from my 401k which is worth about $500k. I have a second 401k from a previous employer worth about $300k. Also I started collecting social security this year at $2800/month.
Last year my gross taxable income was under $60k because I put 40% of my salary in my 401k. That of course will stop and ALL my income with be taxable. I'll probably have a gross income of over $90k next year (I get a pension from my old employer).
What tax surprises do I have to look forward to? I think my Medicare premium will go up? Of course my tax bracket will go up. What else should I brace myself for?
thanks