What Are 3 Strategic Ways for Retirees to Use Their Required Minimum Distribution (RMD)?
The bulk of your retirement money has already been earned, but that doesn't mean you can't make the most of what you have.
Are you going to be 73 years old (or older) at any time this year? And if so, do you have any money sitting in one or more non-Roth IRA accounts? If the answer to both of these questions is yes, then you'll soon be withdrawing funds from those accounts, whether you need to or not. Those funds will be your required minimum distributions, or RMDs.
That said, you're not required to take this money and park it in a checking account. Indeed, you should be thinking far more strategically about your RMD.
Just as the name suggests, required minimum distributions are required annual withdrawals from ordinary IRA accounts beginning in the year you reach 73 years of age. Although you have until April 1 of the year after you turn 73 to take your initial RMD, you must take subsequent RMDs by the end of each calendar year.
