Reinvesting Your RMD in Retirement? Here's What You Need to Know

You can't leave all your money in an IRA, but that doesn't mean you can't do something constructive with it outside a tax-deferring retirement account.

Mar 16, 2025 - 10:49
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Reinvesting Your RMD in Retirement? Here's What You Need to Know

Is the IRS now forcing you to take money out of your IRA? If you're going to be 73 years old (or older) at any point this year and the IRA in question isn't a Roth account, it will be. They're called required minimum distributions, in fact, or RMDs. These withdrawals ensure the federal government eventually collects the taxes you've been able to defer until now. As for the size of your distribution, that depends on the value of your account and your age -- the older you are, the bigger your required distributions become.

Whether this will be your first RMD or if you've now received several, there are some things about required minimum distributions you might want to know...particularly if your plan is to reinvest this money.

But first things first.

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