Reported 1 day ago
As individuals approach retirement and start taking required minimum distributions (RMDs) from their tax-deferred accounts like 401(k)s and IRAs, they often encounter the challenge of managing these funds, especially if they do not need the money for living expenses. Starting in 2024, individuals must take their first RMD at age 73, with penalties for non-compliance. To minimize taxes associated with this income, options include making charitable donations through Qualified Charitable Distributions, continuing to work to delay RMDs from certain accounts, purchasing annuities, reinvesting in Roth IRAs, or consulting with financial advisors for personalized strategies. Planning ahead is crucial to effectively navigate the tax implications and utilize RMDs wisely.
Source: YAHOO