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IRAs - Required Minimum Distributions
Episode 12410th November 2021 • Secure Your Retirement • Radon Stancil, CFP® & Murs Tariq, CFP®
00:00:00 00:20:22

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Do you have any strategies surrounding your Required Minimum Distributions (RMD)?

Required Minimum Distributions (RMDs) references money in a tax-deferred vehicle like a 401k or the traditional IRAs. You need to think and plan for the Required Minimum Distributions as you will be required to start paying taxes when you get to age 72.

In this episode of the Secure Your Retirement podcast, we talk about the RMDs and strategies to keep in mind when planning for them. We explain how to calculate your RMDs using the IRS life expectancy formula and why you should start planning as early as possible.

In this episode, find out:

  • Understanding RMDs tax benefits and how they apply to your pretax type account like IRAs.
  • You can take your money out of the RMD on the year you turn 72 and before 12/31 of the same year.
  • The IRS life expectancy formula to calculate your annual RMD.
  • How you can defer your first-year income after you turn 72, and when it is advisable you do so.
  • How to withdraw your RMD income from different IRAs.
  • Avoid mistaking your RMD for the year to avoid the up to fifty percent penalty.
  • How you can convert your RMD into a Roth prior to age 72 and increase your growth and income.
  • Reinvest your money after taking it out of the IRA.
  • Qualified Charitable Distribution (QCD) – how to specifically not pay taxes while giving money to charity.
  • Have a plan as early as possible rather than delaying to the last minute.

Tweetable Quotes:

  • “You don’t want to mistake your RMD for the year because that can result in a hefty penalty of up to fifty percent.”- Murs Tariq
  • “You can take out your Required Minimum Distributions pay the tax, and then reinvest whatever is left over.”- Radon Stancil

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.