If I am not spending all my required minimum distribution (RMD) money each year, can I roll some of this back into my stocks? If so, will I be taxed on the amount rolled back in? Would this be considered double taxation? If I’m only taxed on the additional interest this money generates when I […]
Tag: RMD
I Turn 73 This Year. How Do I Avoid RMD Taxes?
The IRS allows workers to put aside pre-tax earnings in traditional Individual Retirement Accounts, 401(k) and similar workplace accounts, and for all the money to grow – tax-deferred – to give you cash for retirement. But the national tax collector only waits so long to collect, and once you turn 73, the law forces retirees […]
How Can I Reduce the Amount of My RMD Payments?
In the year that a required minimum distribution (RMD) is due from a 401(k), IRA or other pre-tax retirement account, you’re required to withdraw a certain amount and pay your taxes due to avoid a 50% penalty. But that doesn’t mean there’s nothing you can do about this, and the associated taxes. With proper planning, […]
I botched my first RMD by taking one withdrawal for three accounts. Shouldn’t the final amount be the only thing that matters?
The IRS says all tax-deferred accounts are not the same and you can only match apples to apples for RMDs. – Getty Images Dear Fix My Portfolio, I have a tax-deferred annuity, a traditional IRA and a 403(b). Most Read from MarketWatch I turned 73 last year. I totaled my three balances as of Dec., […]
I Waited to Take My First RMD Until April 1st. Will This Affect My Second Year’s RMD?
Unlike most personal finance questions, the answer to this one is short and simple: yes, waiting until April 1st to take your first RMD will affect the amount of your second year’s RMD. The IRS rules on required minimum distributions – RMDs – demand that anyone turning 73 in 2024 withdraw a certain minimum amount […]
Is It Better to Take My RMD Later or Earlier in the Year? How Do I Decide?
People often think they don’t have any choice about taking the IRS-mandated required minimum distributions from their retirement accounts – but they do. While you can’t skip making the withdrawal they can choose how to time it in a way that works best for their individual financial situation. Required minimum distributions – RMDs, for short […]
Could These RMD Rules Turn Charitable Donations Into Long-Term Retirement Income?
New RMD Rules Let You Turn Charitable Donations into Retirement Income for Life Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life. A financial advisor can help you manage your […]
Is There Actually an RMD Cut-Off Age?
at what age does rmd stop Required minimum distributions (RMDs) are the minimum amount that you must withdraw from certain tax-advantaged retirement accounts. They begin at age 72 or 73, depending on your circumstances and continue indefinitely. There is, unfortunately, no age when RMDs stop. You must continue to take them for the lifetime of […]
I’m Over Age 72. How Do I Avoid the RMD Tax Bite?
Steven Jarvis, CPA I’m over age 72. What can I do about avoiding the required minimum distribution (RMD) tax bite? I have a steady stream of other income. -Bernie Tax-deferred accounts, such as 401(k)s and traditional individual retirement accounts (IRAs), are potentially great vehicles to save for retirement. But they come with strings attached. By […]
Required Minimum Distribution (RMD) Calculator
Use SmartAsset’s RMD calculator to see what your required minimum distributions look like now and in the future. Enter your retirement account balance at the end of the previous year, your age and the expected rate of return on the account to calculate your RMDs. Do you have retirement planning questions? Speak with a financial […]
Required Minimum Distribution (RMD) Calculator
Use SmartAsset’s RMD calculator to see what your required minimum distributions will look like now and in the future. Enter your retirement account balance at the end of the previous year, your age and the expected rate of return on the account to calculate your RMDs. Do you have retirement planning questions? Speak with a […]
How Do I Reduce My RMD to Just $25k So My Social Security Isn’t Taxed?
Financial advisor and columnist Matt Becker I’m in my first year of required minimum distributions of $36,000, which is causing me to be taxed on my $33,000 in Social Security benefits. What is a good strategy to reduce my RMDs below $25,000 so my Social Security benefits do not become taxable? Would taking a lump […]