When you turn 70 1/2, tax law demands you take some money out of traditional IRAs and other tax-deferred retirement accounts. One senator wants to make those required minimum distributions, or RMDs, later.
A relatively new way to hold down RMDs is to invest part of the account in a QLAC.
What happens when you have to take your required minimum distribution?
As of 10 days ago, 66 percent of Fidelity Investments, more than 500,000 IRA customers, who are required by the IRS to take minimum distributions from their retirement accounts for tax year 2011 have not yet taken the full amount. About 55 percent haven’t taken any. Fidelity blames this oversight on market volatility and confusion
I wrote about required minimum distributions, or RMDs, on Thursday — something that many people consider an annoying — and possibly unfair — part of retirement planning. Here’s another way to look at them. At 70½, the IRS requires that you start taking annual distributions from your tax-advantaged retirement savings or face a 50 percent
Here’s more evidence that the retirement planning industry is figuring out that lots of us who are living on retirement savings — or contemplating it — need help. If you have IRA accounts and are over age 70½, then you’ve had to deal with the required minimum distribution, or RMD, rules and know how complicated they
We’re getting to the time of the year when people who are living in retirement and those facing a retirement planning deadline have to figure out how to ante up — or avoid anteing up — a bundle to Uncle Sam. Schwab Financial Consultant Brian Mahoney, a branch manager in Miami and Coral Gables, offers