Monday, March 5, 2012 - 4:36 PM

Smart Strategies For Taking Required Minimum Distributions

After years of delaying income tax on your 401(k) and IRA contributions, Uncle Sam comes to collect in retirement. Distributions from 401(k)s and IRAs become required after age 70½, and you must pay income tax on each withdrawal. Here are some strategies for taking required minimum distributions that will help you preserve as much spending power as possible.

KenBDG5,153 posts since
Nov 29, 2009
Rep Points: 117,125

1. Monday, March 5, 2012 - 9:06 PM

I already follow what is in this report. However, since our IRAs hold CDs, my way of withdrawing the RMD is to always have a CD for the amount I project will be needed maturing in the early part of the year so I can use it for the RMD. This way I do not have to interrupt any of the CDs for the RMD. It takes a bit of work to keep control of my method but it works best for me. Thanks for sharing the report. It is always good to review these things.

Apache43 posts since
Dec 5, 2011
Rep Points: 563