What do you do with an RMD that you don’t need? Now an RMD stands for required minimum distribution.
The government makes you take it. What if you don’t need it.
What should you do with it?
So under the current law, at age 72 you have to start taking required minimum distributions from your traditional IRAs and traditional TSPs and 401(k)s.
What if you are funding your lifestyle out of your pension and out of Social Security and you don’t need the RMD to fund your lifestyle?
What typically happens is that your traditional IRA will send you your RMD each year and it accumulates in your checking account.
At some point, the checking account may get big enough that you open up an investment account for taxable money and it starts accumulating there.
But is there some next step planning that you could do with that money?
We’re gonna go over several options that you could do with that excess money if you don’t need it to fund your lifestyle.
But if you are not age 72 yet, there are some planning things you can do now so that you don’t have to have RMDs later.
These RMDs can push you up into tax brackets that you may not want to be in. Let’s say you’re 55, 60, 65 you can do some planning now to manage the RMDs by either Roth converting enough money that you don’t have RMDs at all or at least Roth converting enough that the RMDs are manageable.
If you want to work with a company that is forward-thinking, is fiduciary, and is looking out for what's in your best interest, please reach out to Christy Capital Management.
www.christycapital.com
You can believe that planning ahead for taxes and planning ahead for RMDs is in your best interest.
Please reach out to Christy Capital Management, go to the website send us some information so that we can reach out to you, call the number on your screen.
The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.
