4 Ways to Manage Your Required Minimum Distributions (RMDs) When You Don’t Need the Money
It’s that time of year again… If you are over 70 ½ then you know that it is RMD season! In traditional retirement accounts, the IRS requires you to take minimum distributions once you turn 70 ½. It’s inevitable and there is no way around it… Many people find themselves in similar situations during this time: they are receiving too much money! Yes, too much money… After much of your life is spent saving, many retirees find it difficult to shift gears and start spending – leaving them with more money than they know what to do with when they’re required to start making withdrawals. So, what do you do with that money? Here are 4 options that can help you make that decision:
1. Make a qualified charitable donation.
2. Reinvest the RMD in a money-market account or another investment vehicle.
3. Reduce RMD amounts by converting a portion of your traditional IRA to a Roth IRA.
4. Decrease RMDs by purchasing a qualified longevity annuity contract.
For more details and information check out this article or contact us here. We are happy to discuss these options and what might be best for your current situation!