Fill two needs with one deed by applying some art to taking
required minimum distributions from retirement accounts.
Traditional IRAs impose
required minimum distributions that you must take once you reach age 70 1/2.
Currently, beneficiaries have the option of taking an inherited IRA via a lump sum or through stretching, which allows them to take
required minimum distributions based on their life expectancy.
These distributions are called
required minimum distributions (RMDs) and are based on annuity tables.
Under the new law, taxpayers who must begin taking
required minimum distributions from an IRA at age 70.
Your beneficiaries will have
required minimum distributions (RMDs) from the inherited IRA, and those distributions probably will be taxable.
With an HSA paired with an HDHP, employees may put aside money each year for health care, yet take no
required minimum distributions (RMDs) from those accounts, and the savings can remain invested and continue to grow.
Yes, by doing so, the client will pay higher taxes, but he said it makes sense because "when you start taking Social Security, you'll have lower Social Security taxes, and you will have lower
required minimum distributions because you've taken out" of the IRA or 401(k) first.
Currently, with traditional IRAs and qualified retirement plans, individuals typically must begin taking
required minimum distributions (RMDs) no later than age 70 A'.
Jeffrey Brown, University of Illinois at Urbana-Champaign and NBER; James Poterba, MIT and NBER; and David Richardson, TIAA-CREF, "Do
Required Minimum Distributions Constrain Household Behavior?
More than half (57 percent) do not know that 70V2 is the age at which
required minimum distributions from traditional IRAs and 401 (k) plans must begin.
Required minimum distributions are minimum amounts that a retirement-plan account owner must withdraw annually starting with the year that he or she reaches 70 1/2 years of age or, if later, the year in which he or she retires.
