10 Strategic Ways for Retirees to Use Their Required Minimum Distribution (RMD)
You may not realize it, but if you're saving for retirement with some tax-advantaged retirement accounts such as IRAs and 401(k)s, some of those accounts may require that you take required minimum distributions (RMDs) once you reach age 73.More specifically, the Internal Revenue Service (IRS) requires us to take RMDs annually from accounts such as traditional IRAs, SEP IRAs, and SIMPLE IRAs annually once we reach the age of 73. A typical RMD withdrawal will count as taxable income to you -- so it's smart to plan for it when you're devising your retirement plan.Image source: Getty Images.Continue reading
You may not realize it, but if you're saving for retirement with some tax-advantaged retirement accounts such as IRAs and 401(k)s, some of those accounts may require that you take required minimum distributions (RMDs) once you reach age 73.
More specifically, the Internal Revenue Service (IRS) requires us to take RMDs annually from accounts such as traditional IRAs, SEP IRAs, and SIMPLE IRAs annually once we reach the age of 73. A typical RMD withdrawal will count as taxable income to you -- so it's smart to plan for it when you're devising your retirement plan.
Image source: Getty Images.
