3 Big Required Minimum Distribution (RMD) Rule Changes that Have Taken Effect in Recent Years -- and What They Mean for Retirees
Written by Selena Maranjian for The Motley Fool -> Anyone nearing age 73 needs to learn about required minimum distributions (RMDs). They count as taxable income, so plan for that. There's a handy way you can get around that taxable income, if you're feeling generous. If you'
Anyone nearing age 73 needs to learn about required minimum distributions (RMDs).
There's a handy way you can get around that taxable income, if you're feeling generous.
If you're approaching your 70s, or have recently entered them, you need to learn about and plan for your Required Minimum Distributions (RMDs). (There's a chance your retirement accounts don't feature them, but many do.)
If you think you know all you need to know about them, think again, because there have been some significant RMD changes in the past few years.
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First, let's set the scene. It's smart to make the most of tax-advantaged retirement accounts such as IRAs and 401(k)s to help you save and invest for retirement. But some such accounts feature Required Minimum Distributions (RMDs).
Per the Internal Revenue Service (IRS), RMDs must be taken annually from traditional IRAs, SEP IRAs, and SIMPLE IRAs once we reach age 73. (Roth accounts do not feature RMDs for the original owners of the accounts.)
When you take your RMD, that income will count as taxable income to you -- so keep that in mind when developing your retirement plan .
