It feels great skipping out on taxes and saving towards retirement by contributing to an IRA, but not so much when it comes time to withdraw that money – and pay those taxes. Hefty required minimum distributions (RMDs) can push you into a higher income bracket, which means paying even more taxes. Sound like you …
Continue reading “4 Reasons to Consider Making a Qualified Charitable Distribution (QCD)”
Anyone approaching age 72 or older, with a qualified retirement plan, needs to know about RMDs. An RMD is a Required Minimum Distribution, a forced withdrawal from a qualified retirement account with funds that have never been taxed. Examples of these accounts include IRAs, 401(k)s, 403(b)s, or SEP IRAs. RMDs were subject to different rules …
The SECURE Act is the largest piece of retirement legislation to pass Congress since the Pension Protection Act of 2006. Signed into law at the end of December 2019, the SECURE Act went into effect on January 1st, 2020. But that quick turn-around has left many Americans wondering how the bill will affect their retirement …
Continue reading “How will the SECURE Act impact my retirement?”
1. Missed Deadlines What it is If you don’t take your RMD or take it after the December 31st deadline, you will be subject to a 50% penalty. That means half of your withdrawal goes directly to the IRS. What you can do about it You have the option to appeal the penalty for a …
Continue reading “4 Common RMD Mistakes You Might Be Making”
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