Reported about 1 year ago
The IRS requires individuals turning 73 to withdraw a certain minimum amount from their retirement accounts yearly. Postponing the first Required Minimum Distribution (RMD) until April 1st of the following year can lead to larger RMDs in the subsequent year due to two distributions being required. Financial advisors generally advise against delaying RMDs as it can push individuals into a higher tax bracket, increase taxes on Social Security benefits, and potentially trigger Medicare surcharges. RMD amounts are calculated based on account balances and IRS life expectancy tables, so delaying the first RMD typically results in larger subsequent distributions. However, in specific cases, such as when not needing the funds for living expenses and using RMDs for qualified charitable distributions, the strategy may have benefits. Consulting a financial advisor is recommended for personalized RMD planning.
Source: YAHOO