Required Minimum Distributions
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SECURE Act 2.0 Revised Some Rules on Annuities and RMDs
The SECURE Act 2.0 and the IRS regulations issued under that law made a subtle change that can reduce lifetime income taxes for people who own some types of annuities through IRAs or 401(k)s. The SECURE Act 2.0 was enacted in 2022, and the IRS regulations were issued in 2024. The change applies to annuities […]
IRAs, RMDs and Annuities
I frequently receive questions about how required minimum distributions (RMDs) are handled when a traditional IRA owns one or more annuities. The surge in questions on the topic isn’t surprising, because annuity sales climbed in recent years. More people in or near retirement want the safety and guaranteed lifetime income of annuities. Since a high […]
The RMD Trap and Why You Need to Avoid It
Year after year, I hear from retirees who weren’t aware of the required minimum distribution (RMD) trap until they were snared by it well into retirement. I’ve decided it should be included among the Stealth Taxes. All retirees and pre-retirees should know about the retirement tax ambush that Congress and the IRS have set for […]
What You Can and Can’t Do with RMDs
The tax code and regulations have detailed and specific rules concerning who must take required minimum distributions (RMDs), when they must be taken, and how they are calculated. But there is no guidance about what a retirement plan owner or beneficiary can do with the RMD. So let’s clear up some of the confusion. First […]
9 Ways to Trim Taxes and Maximize Benefits from RMDs
Required minimum distributions (RMDs) from IRAs weren’t simplified or changed in the new tax law. Taxpayers ages 70½ and older still have to take these distributions from traditional IRAs and other qualified retirement plans, 401(k)s included, whether they need the money or not. The good news is we still have strategies to simplify RMDs and […]
How to Have The Penalty For RMD Mistakes Waived
One of the stiffest penalties in the tax code is the one for not taking the correct required minimum distribution (RMD) from an IRA or other qualified retirement plan. You pay a whopping 50% of the amount that was supposed to be distributed but wasn’t. This penalty is in addition to paying income taxes on […]
How to Trim Taxes and Maximize Benefits from RMDs
Last week, I shared 4 ways to trim taxes, and maximize required minimum distribution (RMD) benefits. This week, let’s continue the discussion, with 5 more strategies to consider, starting with.. Timing distributions. The tax law says the IRA must distribute at least the RMD by the close of business on Dec. 31. Other than […]
9 Required Minimum Distribution (RMD) Strategies Every Retiree Should Know
Every retiree wants to trim taxes, and maximize benefits. But very few know how to approach this the right way. Today, I’ll share how you can maximize your benefits from Required Minimum Distributions (RMDs), and reduce your tax bill. Required minimum distributions from IRAs weren’t simplified or changed in the new tax law. Taxpayers ages […]
