Reinvesting Your RMD as a Retiree? Here's What You Need to Know

If you're retired and have a tax-deferred retirement account -- like a traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or other employer-sponsored plan -- you're undoubtedly aware that you must start taking required minimum distributions (RMDs) once you reach a specific age. But what if you don't need the money to help you cover everyday expenses? What if you'd rather reinvest the funds as soon as they're withdrawn?If you've hit age 73 (or 75 for those born in 1960 or later) and you find yourself withdrawing RMDs you don't immediately need, here's what you should know about investing the money elsewhere.Image source: Getty Images.Continue reading

Apr 19, 2025 - 11:43

Reinvesting Your RMD as a Retiree? Here's What You Need to Know

If you're retired and have a tax-deferred retirement account -- like a traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or other employer-sponsored plan -- you're undoubtedly aware that you must start taking required minimum distributions (RMDs) once you reach a specific age. But what if you don't need the money to help you cover everyday expenses? What if you'd rather reinvest the funds as soon as they're withdrawn?

If you've hit age 73 (or 75 for those born in 1960 or later) and you find yourself withdrawing RMDs you don't immediately need, here's what you should know about investing the money elsewhere.

Image source: Getty Images.