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5 Strategies for Avoiding RMD Errors
If you've been tucking money away into a traditional IRA, SEP IRA, SIMPLE IRA, or employer-sponsored plan like a 401(k), you'll eventually have to take required minimum distributions (RMDs) and pay taxes on the money withdrawn. Generally, RMDs kick in the year you turn 73 (or 75, if you were born in 1960 or later).The IRS is pretty strict about RMD rules and anxious to collect the taxes that weren't paid when the money was invested. The following five strategies can help you avoid the ire of the IRS and potentially save money along the way.Image source: Getty Images.Continue reading
If you've been tucking money away into a traditional IRA, SEP IRA, SIMPLE IRA, or employer-sponsored plan like a 401(k), you'll eventually have to take required minimum distributions (RMDs) and pay taxes on the money withdrawn. Generally, RMDs kick in the year you turn 73 (or 75, if you were born in 1960 or later).
The IRS is pretty strict about RMD rules and anxious to collect the taxes that weren't paid when the money was invested. The following five strategies can help you avoid the ire of the IRS and potentially save money along the way.
Image source: Getty Images.
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