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Required Minimum Distributions Rmds

All articles tagged with #required minimum distributions rmds

personal-finance2 years ago

Avoid Costly Mistakes: Take Your 2023 Required Minimum Distributions (RMDs) Now

Confusion about retirement fund minimum distributions can lead to costly mistakes. Minimum distributions are not required at age 59.5, but rather at age 73 or later, depending on the birth year. If still working, RMDs can be postponed for retirement plans sponsored by the current employer, but they are still required for other retirement accounts. Roth accounts are exempt from RMDs. It is advisable to consult a tax professional to navigate the complexities of tax law and avoid costly missteps.

via OregonLive|
#personal-finance#required-minimum-distributions-rmds#retirement-funds
finance2 years ago

Navigating Complex Required Withdrawals from Retirement Accounts Under New Rules

Financial advisers are facing challenges in explaining the changes to the laws on required minimum distributions (RMDs) from retirement plans to their clients. The rules surrounding RMDs have become more complex due to recent legislation, including the Secure Act 1.0 and Secure Act 2.0. Confusion arises from the changes in the RMD age, with clients unsure if it is 70.5, 72, or 73. The IRS has released notices providing relief, but this has added to the confusion. The penalties for mistakes in RMD withdrawals are significant, and the rules for calculating RMDs are intricate. The key rule for 2023 is that if you were born in 1950 or earlier, you must take RMDs this year, while those born in 1951 or later do not have to. The rules for inherited accounts and Roth accounts are also complex.

via MarketWatch|
#finance#financial-advisers#required-minimum-distributions-rmds
personal-finance2 years ago

Maximizing Retirement Income: The Dilemma of Donating RMDs

A couple in their 70s with $760,000 in savings and $10,000 monthly income from Social Security and pensions are considering donating their required minimum distributions (RMDs) from their IRAs to charity to avoid higher income tax. The decision depends on their financial comfort and future expenses. They should assess their future needs and ensure they won't require the funds they plan to donate. They must also confirm that the charity is qualified according to the IRS. Qualified charitable donations allow individuals to give away their RMDs from IRAs without paying taxes on the money. They can donate up to $100,000 under the QCD rules and deduct the donation from their taxable income.

via MarketWatch|
#charitable-donations#financial-planning#income-tax