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Schlotzhauer & West, CPAs
Phone: 714-695-9173
Website: www.s-wcpa.com
Richard email: rwest@s-wcpa.com
Melissa email: mpentoney@s-wcpa.com
November 2024
How to Take Tax Friendly RMDs
Before you retire, consider planning for your required minimum distributions (RMDs). This can be more complicated than you imagine if you have significant retirement assets in qualified plans, but with a little planning, you can achieve a tax-friendly result.
KNOW THE RULES
Retirees can wait until April 1 of the year after their 73rd birthday to begin taking withdrawals. In 2033, the age for taking RMDs will increase to 75. There is a penalty tax for missing a required withdrawal.CONSIDER THESE MOVES
Converting some traditional IRA assets to a tax-free Roth IRA during lower-income years to limit the future income tax bite (you'll pay ordinary income tax upon conversion). You can also invest some IRA money in a Qualified Longevity Annuity Contract (QLAC), which can delay required payments for several more years.CONTACT US
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